Underdog sues Connecticut over prediction-market enforcement
UnderdogPlaintiff; prediction-market operator
Underdog Exchange DCM, Inc. and UDM, LLC filed a federal lawsuit against Connecticut officials (DCP Commissioner Bryan Cafferelli, AG William Tong, and Kristofer Gilman) on September 15, 2026, seeking declaratory and injunctive relief on the grounds that the Commodity Exchange Act preempts Connecticut's enforcement against its prediction-market contracts.
“Underdog Exchange DCM, Inc. v. Tong, No. 3:26-cv-01499 (D. Conn.), seeking declaratory and injunctive relief on Commodity Exchange Act preemption grounds.”
Original text
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
Original text
About this source
Federal court docket for Underdog Exchange DCM, Inc. and UDM, LLC v. Tong, filed September 15, 2026 in the U.S. District Court for Connecticut, seeking declaratory/injunctive relief on Commodity Exchange Act preemption grounds.
Before the quotation
Filing suit against Connecticut officials in federal court.
After the quotation
The suit follows Connecticut's enforcement actions against several prediction-market operators, including Underdog, the prior week.
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
Underdog's federal suit challenges Connecticut's legal authority to regulate its prediction-market contracts as gambling, asserting federal preemption under the Commodity Exchange Act — directly disputing the case's central legal question from a new party distinct from Kalshi's existing litigation.
- Recorded on
- Published here
- People and groups discussed
- Connecticut Department of Consumer Protection, Bryan T. Cafferelli
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
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. "Underdog sues Connecticut over prediction-market enforcement". First published: 2026-09-17. Last updated: 2026-09-17. https://disputeindex.com/events/795-underdog-exchange-dcm-inc-and-udm-llc-filed