Is Kalshi legal in Connecticut?

By Vardan KhachatryanLast updated: Litigation tracker

Yes, for now. Kalshi is legal in Connecticut in one narrow sense: no court order stops it, sports included. The state disagrees. It ordered Kalshi to stop sports contracts in December 2025, and a federal judge refused to block that order. The Second Circuit decides next.

Kalshi in Connecticut

Contested for sports contracts, with no restriction in force.

Sports contracts
Available, but contested
Other contracts
Available
Regulator
CFTC: a designated contract market (DCM) and derivatives clearing organization
Rulings and actions in Connecticut
3 on record, listed in the timeline
Legal sports betting
Since 2021, through three licensed apps, 21 and over
Kalshi users in Connecticut
More than 24,000, Kalshi told the court
Federal appeals court
Second Circuit: has not ruled on the question
Last change
September 8, 2026

Each entry on this page links the ruling or report it rests on. Nothing here is legal advice.

Open Kalshi

$50 bonusNew to Kalshi? Trade $20, get a $50 bonus through our link. US only, 18+. Offer terms

Why Kalshi's status in Connecticut is contested

Kalshi is a federally regulated exchange. The CFTC designated it a contract market in 2020, so its regulator sits in Washington, not Hartford.

Connecticut says that does not cover sports. Its Department of Consumer Protection treats Kalshi's sports contracts as unlicensed sports wagering.

The fight is about sports alone. The state's lawyers told the court their order covers sports contracts only.

For now, nothing stops you from trading. No court has ordered Kalshi out of Connecticut, and Kalshi has not switched the state off.

That could change. Here is where each case stands.

What you can trade on Kalshi from Connecticut

Everything Kalshi lists: sports, politics, economics, crypto, culture and weather. You must be 18 or over and pass its ID checks.

That age is one of the state's complaints. Connecticut's licensed sportsbooks may only take bets from people 21 and over.

Sports is where the risk sits. Kalshi lists NFL, NBA, MLB and college games, down to point spreads and player stats.

College contracts are a sore point here. Connecticut bars its sportsbooks from taking bets on UConn and other in-state college teams, outside tournaments.

The state says Kalshi's contracts on those teams break that rule.

Kalshi has not geofenced Connecticut. It told the court that geofencing one state “effectively means geofencing everywhere.”

How Kalshi works for Connecticut traders

Every Kalshi contract is a yes-or-no question. It pays $1 if the answer is yes and nothing if it is no.

The price is the market's odds. A contract at 60¢ means traders put the chance at about 60%.

Say the Patriots are 60¢ to win on Sunday. You buy 100 contracts for $60. Kalshi's standard fee on that trade is $1.68.

If the Patriots win, you collect $100, a $38.32 profit. If they lose, you are out $61.68.

You trade against other people, not the house. Kalshi earns its fee either way, so it has no stake in who wins.

The fee is highest near 50¢ and shrinks toward either end. Our Kalshi fees guide has the full schedule.

What Connecticut has said about Kalshi

On December 2, 2025, Connecticut's Gaming Division ordered Kalshi to stop offering sports contracts to residents.

The letter called them unlicensed sports wagering. It said Kalshi takes traders under 21 and allows bets on Connecticut college teams.

It also ordered Kalshi to let residents withdraw their money.

“Only licensed entities may offer sports wagering in the state of Connecticut,” said Consumer Protection Commissioner Bryan T. Cafferelli.

Attorney General William Tong went further on August 26, 2026, when the state sued. “Sports event contracts are no different than sports betting,” he said.

Kalshi's head of litigation complained the state was “okay with other prediction markets operating there in the meantime.”

Two weeks later, that changed. On September 10, 2026, the governor announced orders against nine rival apps, from Polymarket to Robinhood.

Kalshi's court fight with Connecticut, explained

Kalshi sued the day the order was announced. Its case, KalshiEX LLC v. Cafferelli, No. 3:25-cv-02016, argues federal law preempts Connecticut's gaming laws.

By agreement, the state held off enforcing while the judge weighed an injunction. That truce began on December 8, 2025.

It ended on August 10, 2026. Judge Vernon D. Oliver denied Kalshi's motion for a preliminary injunction.

He concluded that Kalshi's sports contracts are not swaps under federal law. So federal law does not preempt Connecticut's rules on them.

“Kalshi itself has touted its platform as offering legal sports betting nationwide,” he wrote.

Kalshi appealed the same day. On August 15, the judge refused to pause enforcement while the appeal runs.

The Second Circuit has not ruled. On August 19, one judge denied temporary relief and sent the request to a three-judge panel.

That panel will hear Kalshi's New York and Connecticut appeals in tandem with Coinbase's Connecticut appeal. Kalshi's opening brief is due September 30.

The state has its own case too. It sued in Hartford Superior Court on August 26, and Kalshi moved it to federal court that day.

Connecticut asked on September 8 to send it back to Hartford. Kalshi's response is due September 29.

What could change Kalshi's status in Connecticut

Four things could. The first is the state's own lawsuit, which asks for an injunction against Kalshi's sports contracts.

Other states have won exactly that. Courts in Massachusetts, Nevada and Michigan ordered Kalshi to geofence their states. The Massachusetts order is on hold during an appeal.

The second is the Second Circuit, which covers Connecticut, New York and Vermont. Judge Oliver called the question one “of first impression” there.

The third is the CFTC's own suit against Connecticut, No. 3:26-cv-00498. It asked for a preliminary injunction on September 11, 2026.

The fourth is the Supreme Court. The circuits are split: the Third sided with Kalshi in April, the Ninth and Sixth against it.

New Jersey has asked the Supreme Court to decide. Our litigation tracker follows each case.

Kalshi in Connecticut: timeline

Every change to Kalshi's position in Connecticut, newest first. Each entry links the ruling or filing behind it.

Connecticut asked the federal court to send its lawsuit against Kalshi back to Hartford Superior Court. Source
The Second Circuit set Kalshi's Connecticut and New York appeals to be heard in tandem with Coinbase's. Source
Connecticut sued Kalshi in Hartford Superior Court, seeking an injunction. Kalshi moved the case to federal court the same day. Source
A Second Circuit judge denied Kalshi temporary relief and referred its injunction request to a three-judge panel. Source
Judge Vernon D. Oliver denied Kalshi an injunction pending appeal. Source
Judge Oliver denied Kalshi a preliminary injunction, finding its sports contracts are not swaps. Kalshi appealed that day. Source
The CFTC sued Connecticut, arguing federal law preempts state gambling laws for CFTC-regulated exchanges. Source
Kalshi sued Connecticut's consumer protection officials in federal court. By agreement, the state held off enforcing until the injunction ruling. Source
Connecticut's Gaming Division ordered Kalshi to stop offering sports contracts to residents. Source

How Kalshi compares to sports betting in Connecticut

Connecticut legalized sports betting in 2021. Governor Ned Lamont signed Public Act 21-23 on May 27, and online betting opened on October 19.

Three licensed apps serve the market: DraftKings with Foxwoods, FanDuel with Mohegan Sun, and Fanatics with the Connecticut Lottery.

The two tribes behind those casinos, the Mashantucket Pequot and the Mohegan, hold two of the three online licenses.

The state taxes sportsbook revenue at 13.75%. Bettors must be 21 and physically in Connecticut.

Kalshi fits none of that. It holds no state license, and it accepts traders from 18.

The tribes see a threat. In a May 26, 2026 filing, they warned the CFTC could become “the exclusive regulator of sports betting.”

Other prediction market apps in Connecticut

Kalshi is not alone. In September 2026, Connecticut ordered nine more apps to stop sports contracts, from Polymarket to Gemini.

DraftKings and FanDuel run licensed sportsbooks here, so their prediction apps offer no sports contracts.

Here is where each app we rank stands in the state. See whether Polymarket is legal in Connecticut and prediction markets in Connecticut for the full picture.

Every app we rank, in ranking order, and where it stands in Connecticut.
AppStatus in ConnecticutMore
Gemini PredictionsAvailable, sports includedGemini Predictions review
Polymarket USContested for sports contracts, with no restriction in forceIs Polymarket legal in Connecticut?
OGAvailable, sports includedOG review
Interactive BrokersAvailable; it lists no sports contracts anywhereInteractive Brokers review
RobinhoodContested for sports contracts, with no restriction in forceRobinhood review
ProphetXAvailable, sports includedProphetX review
CoinbaseAvailable, sports includedCoinbase review
WebullAvailable, but not for sports contractsWebull review
NovigAvailable, sports includedNovig review
DraftKings PredictionsAvailable, but not for sports contractsDraftKings Predictions review
Fanatics MarketsNot availableFanatics Markets review
FanDuel PredictsAvailable, but not for sports contractsFanDuel Predicts review
PrizePicksAvailable, but not for sports contractsPrizePicks review
Underdog PredictAvailable, sports includedUnderdog Predict review

How to use Kalshi in Connecticut

Sign up with your email, confirm your identity with a driver's license or passport, and fund the account.

Kalshi takes bank transfers, debit cards, Apple Pay, PayPal, Venmo, wires and crypto, among others.

Withdrawals go back to your bank or card. There is nothing extra to do in Connecticut.

Before you fund it, read our Kalshi review for its fees, payouts and the lawsuits against it. New to all this? Start with what prediction markets are.

Kalshi in Connecticut: FAQ

Can I use Kalshi in Connecticut?

Yes, for now. If you are 18 or over, you can open an account and trade every category, sports included. Connecticut has ordered Kalshi to stop sports contracts, but no court has enforced that order.

Is Kalshi banned in Connecticut?

No. The state ordered Kalshi to stop sports contracts and sued it in August 2026. No court has granted the state an order, so Kalshi still operates here.

Why is Connecticut suing Kalshi?

The state says Kalshi runs unlicensed sports betting. Its orders cite traders under 21 and contracts on Connecticut college teams, both barred for its sportsbooks. The lawsuit seeks an injunction.

Does Connecticut's order cover Kalshi's election markets?

No. The state's letter targets sports contracts, and its lawyers told the court the order covers sports only. Politics, economics and weather markets are not part of the fight.

How old do you have to be to use Kalshi in Connecticut?

18. Kalshi checks your ID before you can trade. Connecticut sportsbooks require 21, and the state cites that gap in its case.

Is sports betting legal in Connecticut?

Yes, since 2021, for adults 21 and over. DraftKings, FanDuel and Fanatics hold the three online licenses. Prediction market apps are a separate, federally regulated product.

Do I pay tax on Kalshi profits in Connecticut?

Yes. Connecticut taxes the profits as income, at rates from 2% to 6.99%, with no separate rate for gains. How the IRS treats event contracts is not settled, so ask a tax adviser.

Is Polymarket legal in Connecticut?

It is contested. Polymarket US operates here, but the state ordered it to stop sports contracts in September 2026. No court has ruled on Polymarket in Connecticut.

Is this legal advice?

No. It summarizes public rulings and filings, each cited. For a decision that matters, ask a lawyer licensed in Connecticut.

Sources

  1. D. Conn.: KalshiEX LLC v. Cafferelli, No. 3:25-cv-02016, order denying a preliminary injunction (Aug 10, 2026)
  2. D. Conn.: order denying an injunction pending appeal (Aug 15, 2026)
  3. Second Circuit, No. 26-2239: order referring Kalshi's motion to a panel (Aug 19, 2026)
  4. Second Circuit: order hearing Nos. 26-1835, 26-2239 and 26-2297 in tandem (Sep 3, 2026)
  5. CourtListener docket: KalshiEX LLC v. Cafferelli
  6. D. Conn.: State of Connecticut v. KalshiEX LLC, No. 3:26-cv-01382, stipulation on remand briefing (Sep 17, 2026)
  7. Connecticut DCP: cease-and-desist letter to KalshiEX LLC, Case No. 2025-77 (Dec 2, 2025)
  8. Connecticut DCP: orders to Robinhood, Crypto.com and Kalshi (Dec 3, 2025)
  9. Connecticut Attorney General: Connecticut sues Kalshi (Aug 26, 2026)
  10. Governor Lamont: nine cease-and-desist orders to prediction markets (Sep 10, 2026)
  11. CFTC: lawsuits against Arizona, Connecticut and Illinois (Apr 2, 2026)
  12. Mashantucket Pequot and Mohegan motion to intervene, United States v. Connecticut (May 26, 2026)
  13. Connecticut General Statutes, chapter 229b: sports wagering
  14. Connecticut DRS: resident income tax information
  15. CT Mirror: Connecticut sues Kalshi over unlicensed sports betting (Aug 27, 2026)
  16. CFTC designates KalshiEX LLC as a contract market
  17. Kalshi fee schedule
  18. CoinDesk on the Sixth Circuit ruling and New Jersey's petition

18+. Event contracts can lose their entire value. Nothing here is financial or legal advice. Trading responsibly.