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Connecticut Governor Ned Lamont is pushing to tighten regulation of prediction markets, launching a bill that would prevent anyone under 21 from using the platforms or viewing ads aimed at them. The proposal comes as state regulators have already cracked down on companies they say cross unlicensed sports betting, putting new attention on how these markets operate.
the TIPSGovernor’s Bill No. 5038, was sent to the General Law Committee at the start of the 2026 legislative session. It was submitted directly to the governor under Joint Rule 9 and is tied to his budget recommendations.
the bill zero on the prediction platforms of the market which allows users to buy and sell positions on future events through a bid-ask system. Topics can range from elections to economic indicators. The legislation sets clear boundaries, clearly excluding sports betting, online casino games, internet games, and traditional securities or trades that are already governed by existing law.
If approved, the measure would make it illegal for any prediction market platform operating in Connecticut to allow a resident under 21 to register or open a speculative position. Companies must also verify a user’s age and confirm that the person is physically located in the state before opening an account or placing a bet.
New rules for ads and enforcement
The bill continues by tightening advertising practices. All ads must clearly state that participants must be at least 21 years of age. Direct or targeted advertising, including emails and text messages, must include a clear and easy way for recipients to unsubscribe.
It will prohibit advertising directed at people under 21 or on college campuses. Ads that use images, language, or endorsements designed to specifically appeal to younger viewers will be prohibited, along with promotions that contain misleading information intended to induce consumers to participate.
Platforms that accidentally allow a minor user are required to immediately suspend the account, close all positions, return any funds, and block the user from returning until the age of 21. Violations can carry civil penalties of up to $10,000 per violation, which are enforced by the attorney general, with repeated or continuous violations earning fines of up to $50,000 each.
Today, the DCP’s Gaming Division issued Cease and Desist orders to three platforms that conduct unlicensed sports betting.
Find out why Prediction Market Platforms offer "Sports Events" Contracts are illegal:https://t.co/LXLK1tRR0w
– Connecticut Department of Consumer Protection (@CTDCP) December 3, 2025
The Department of Consumer Protection is tasked with writing regulations to implement the law. The bill also mandates a study beginning July 1, 2026, on how prediction markets affect Connecticut residents, including minor use, ad exposure, problem gambling, and effects on state betting revenue, with a report due by February 1, 2027.
The proposal comes after state officials ordered platforms including Kalshi, Robinhood, and Crypto.com to stop what Regulators described Connecticut sports betting as unlicensed. While the bill carves out traditional sports betting, recent actions highlight growing concerns about prediction-style products blurring the lines of regulation. Most of the provisions take effect on July 1, 2027.
Featured image: Liam Aeneas Via Wikicommons / CC BY-SA 2.0
The post The Lamont bill targets prediction markets following Connecticut’s sports betting enforcement actions first appeared in ReadWrite.
