Kalshi has filed a lawsuit in the Connecticut District Court in response to Connecticut’s latest order, seeking an injunction barring the enforcement of the cease-and-desist order. Recently, the firm says it operates only as a federally regulated derivatives exchange under the CFTC.

The Connecticut Department of Consumer Protection’s Gaming Division told the companies to immediately stop advertising and offering sports event contracts to state residents. Regulators also ordered the platforms to let Connecticut users withdraw their funds.

“Only licensed entities may offer sports wagering in the state of Connecticut,” said Bryan Cafferelli, commissioner of the state’s consumer protection department. 

“None of these entities possess a license to offer wagering in our state, and even if they did, their contracts violate numerous other state laws and policies, including offering wagers to individuals under the age of 21”.

Connecticut joins a growing list of states pushing back against prediction markets. New York sent Kalshi a cease and desist letter in late October, prompting the company to sue the state on Oct. 27. Massachusetts filed suit against Kalshi in state court in September.