Connecticut Governor Ned Lamont is pushing to tighten oversight of prediction markets, rolling out a bill that would block anyone under 21 from using the platforms or seeing ads aimed at them. The proposal lands as state regulators are already cracking down on companies they say have crossed into unlicensed sports wagering, putting new attention on how these markets operate.
The proposal, Governor’s Bill No. 5038, was sent to the General Law Committee at the start of the 2026 legislative session. It was submitted directly by the governor under Joint Rule 9 and is tied to his budget recommendations.
The bill zeroes in on prediction market platforms that let users buy and sell positions on future events through a bid-ask system. Topics can range from elections to economic indicators. The legislation draws clear boundaries, explicitly excluding sports wagering, online casino gaming, internet games, and traditional securities or commodities trading already governed by existing law.
If approved, the measure would make it illegal for any prediction market platform operating in Connecticut to allow a resident under 21 to register or open a speculative position. Companies would also have to verify a user’s age and confirm the person is physically located in the state before an account is opened or a wager placed.
New rules for ads and enforcement
The bill goes further by tightening advertising practices. All ads would need to clearly state that participants must be at least 21 years old. Direct or targeted advertising, including emails and text messages, would be required to include a clear and easy way for recipients to unsubscribe.
It would ban advertising aimed primarily at people under 21 or at college campuses. Ads using imagery, language, or endorsements designed to appeal specifically to younger audiences would be prohibited, along with promotions that contain misleading information intended to push consumers to participate.
Platforms that accidentally allow an underage user would be required to immediately suspend the account, close all positions, return any funds, and block the user from returning until turning 21. Violations could bring civil penalties of up to $10,000 per offense, enforced by the attorney general, with repeat or persistent violations drawing fines of as much as $50,000 each.
Today, DCP's Gaming Division issued Cease and Desist orders to three platforms conducting unlicensed sports wagering.
Learn why Prediction Market Platforms offering "Sports Events" Contracts are illegal:https://t.co/LXLK1tRR0w
— Connecticut Department of Consumer Protection (@CTDCP) December 3, 2025
The Department of Consumer Protection would be tasked with writing regulations to carry out the law. The bill also orders a study starting July 1, 2026, on how prediction markets affect Connecticut residents, including underage use, ad exposure, problem gambling, and impacts on state wagering revenue, with a report due Feb. 1, 2027.
The proposal arrives after state officials ordered platforms including Kalshi, Robinhood, and Crypto.com to halt what regulators described as unlicensed sports wagering in Connecticut. While the bill carves out traditional sports betting, the recent actions underscore growing concern about prediction-style products that blur regulatory lines. Most provisions would take effect July 1, 2027.
Featured image: Liam Enea via WikiCommons / CC BY-SA 2.0
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