Connecticut’s attorney general: sports event contracts are “not magically shielded by federal law”
William TongAttorney General of Connecticut, in a statement to SBC Americas
Connecticut Attorney General William Tong dismissed Underdog’s federal lawsuit as a reuse of arguments other prediction markets have already lost, and said courts have repeatedly held that sports event contracts are sports betting and are not protected from state law by federal regulation.
“This is nothing more than the recycling of failed arguments from other prediction markets. Multiple courts have affirmed that sports event contracts are no different than sports betting and are not magically shielded by federal law.”
Reporting
Where this statement fits
Can Connecticut regulate sports prediction markets as gambling?
Connecticut announced enforcement against nine prediction-market companies on September 10, 2026. The action sharpened an existing dispute with the CFTC over whether sports-event contracts are subject to state gambling laws or exclusive federal commodities regulation.
Source and context
Reporting
About this source
Statement given directly to the trade outlet rather than issued as a press release; the Connecticut Attorney General’s press page carries nothing on prediction markets after September 10. The same quotation appears in CT Insider syndication, where it is attributed to “an email statement Friday,” i.e. September 18, which conflicts with this outlet’s September 17 publication date.
Before the quotation
Given after Underdog filed suit in federal court on September 15 against Tong, DCP Commissioner Bryan T. Cafferelli and DCP gaming director Kristofer Gilman, challenging the state’s cease-and-desist orders on preemption grounds.
After the quotation
Tong does not identify the rulings he refers to. A separate strand, Connecticut’s own suit against Kalshi, was stayed on September 17 pending a decision on whether it returns to state court.
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
On whether Connecticut may regulate sports prediction markets as gambling, Tong defends the state’s authority to do so, which is the conduct under scrutiny here. He asserts both that the contracts are indistinguishable from sports betting and that federal commodities regulation does not displace state law, the two propositions the preemption argument turns on. He is the first Connecticut law-enforcement principal recorded in this case, alongside the consumer-protection commissioner.
- Recorded on
- Published here
- People and groups discussed
- KalshiEX LLC
More from this case
Read the full caseCafferelli says four of nine companies are engaging with Connecticut
“We have received a handful of responses to our actions last week... We are working with those who have responded on next steps.”Read statement
Underdog sues Connecticut over prediction-market enforcement
Underdog
“Underdog Exchange DCM, Inc. v. Tong, No. 3:26-cv-01499 (D. Conn.), seeking declaratory and injunctive relief on Commodity Exchange Act preemption grounds.”Read statement
Diana Goode supports Connecticut's prediction-market enforcement
“We support the state’s efforts, including seeking judicial remedies”Read statement
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The Dispute Index. "Connecticut’s attorney general: sports event contracts are “not magically shielded by federal law”". First published: 2026-09-19. Last updated: 2026-09-25. https://disputeindex.com/events/1098-connecticut-attorney-general-william-tong-dismissed-underdog-s