Four prediction-market companies have opened discussions with Connecticut regulators about potentially stopping services the state says are illegal, an early sign that a sweeping enforcement action is beginning to produce responses. Novig, ProphetX, Gemini and Webull are communicating with Consumer Protection Commissioner Bryan Cafferelli, while five other companies had not responded as of this week, according to reporting by CT Insider.
The practical consequence for Connecticut customers remains unsettled. The companies in talks have not necessarily withdrawn every affected product, and the Department of Consumer Protection has not announced final settlements. Residents using any of the nine named platforms should therefore check account notices and withdrawal options rather than assume that all contracts remain available. The state’s September 10 enforcement notice expressly directed the platforms to stop making sports-event contracts and other unlicensed online gambling available to Connecticut residents while allowing customers to withdraw their funds.
Connecticut sent cease-and-desist orders to Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict. The state also issued subpoenas to nine licensed gaming-service providers and 15 media organizations that officials said may hold relevant information; those subpoena recipients are not themselves targets of the investigation. State officials say the platforms bypass Connecticut’s licensed wagering system and can expose prohibited bettors, including people under 21 and residents on the voluntary self-exclusion list, to products the state treats as gambling.
The disagreement is not simply about enforcement timing. Prediction-market operators characterize event contracts as federally regulated derivatives. Polymarket and Robinhood told CT Insider that the Commodity Futures Trading Commission has jurisdiction over their products. Earlier this year, the federal government sued Connecticut and two other states, arguing that state efforts to police prediction markets interfere with the CFTC’s exclusive authority over national derivatives markets.
Connecticut maintains that a federal label does not displace its gaming and consumer-protection laws when a product functions as sports wagering. The dispute has broader stakes because sports contracts can resemble sportsbook bets even though they are structured as shares that settle according to an event’s outcome. Federal regulators separately continue to police misconduct in these markets: the CFTC’s enforcement division issued a February advisory after cases involving nonpublic information and fraud on a prediction-market exchange.
For now, the clearest development is procedural rather than final: four companies are engaging with the state, five have not answered, and Connecticut has not withdrawn its orders. Any platform-wide shutdown, negotiated limitation or court order would be a separate next step. Because contract availability can change before litigation is resolved, customers should preserve transaction records, avoid opening new positions that may become difficult to close, and use the withdrawal path required by the state order if a platform restricts Connecticut access. Users with unresolved balances can also document support requests and complaints for the Department of Consumer Protection.
