Connecticut Sues Kalshi, Saying Selective Enforcement Highlights Regulatory Divides Over Prediction Markets

According to Jovy Dedaj, lead counsel for Kalshi's litigation, Connecticut recently filed a lawsuit against prediction market platform Kalshi, demanding it immediately cease operations in the state; however, the state has not yet taken similar measures against other prediction markets still operating there. Dedaj argues that this action reflects inconsistencies in state-level enforcement, is not driven solely by consumer protection concerns, and highlights jurisdictional disputes surrounding prediction markets between state gambling regulation and the federal regulatory framework.