William Tong criticizes Kalshi's alleged consumer-protection failures
William TongAttorney General of Connecticut
Tong alleges that Kalshi lacks safeguards Connecticut requires and rejects its argument that federal law shields its sports contracts from state regulation.
“None of that is happening now on Kalshi, and we’re suing to put a stop to it”
Official statement
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
Official statement
About this source
Official announcement of Connecticut's lawsuit against Kalshi. Tong's statement sets out the state's allegations and rationale for suing; it is not a judicial finding.
Before the quotation
Tong identifies protections for minors, people at risk of problem gambling, customer funds and personal information; those safeguards are the referent of the excerpt.
After the quotation
His statement appears in the announcement of Connecticut's lawsuit. It records his allegations and enforcement rationale, not a finding that Kalshi committed the alleged violations.
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
The case asks whether Connecticut can regulate sports prediction markets as gambling, and the conduct under scrutiny is the state's enforcement. Tong says Kalshi lacks the safeguards Connecticut requires and that the state is suing to stop it, which supports the enforcement, so we labeled it Defended or excused. The closest competing label is Condemned, which here would mean opposing state regulation of the markets; his criticism is aimed at Kalshi, not at the state's action. Evidence: the attorney general's announcement.
- Recorded on
- Published here
- People and groups discussed
- KalshiEX LLC
Corrections to this statement
These notices document reporting corrections, classification changes, and topic-label updates.
Classification correction
Correction to: Statement by William Tong
- Previous classification
- Position Event #548 classified Attorney General Tong's statement as "Condemned," treating his criticism of Kalshi as opposition.
- Corrected classification
- Tong's statement supports Connecticut's lawsuit against Kalshi, so the classification is "Defended or excused."
In this case the labels are measured against Connecticut's regulation of the markets: Condemned means opposing that regulation and Defended or excused means supporting it. The statement criticized the companies while supporting the state's enforcement, so it was mislabeled. The quotation, summary and source are unchanged.
This corrects an editorial classification.
Official announcement of Connecticut's lawsuit against Kalshi. Tong's statement sets out the state's allegations and rationale for suing; it is not a judicial finding.
More from this case
Read the full caseConnecticut’s attorney general: sports event contracts are “not magically shielded by federal law”
“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.”Read statement
Cafferelli 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
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- William Tong criticizes Kalshi's alleged consumer-protection failures
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Last updated marks the most recent saved version of this published statement.
The Dispute Index. "William Tong criticizes Kalshi's alleged consumer-protection failures". First published: 2026-09-14. Last updated: 2026-10-06. https://disputeindex.com/events/548-tong-alleges-that-kalshi-lacks-safeguards-connecticut-requires