Gemini, ProphetX & WeBull pull sports contracts in Connecticut

Six other exchanges, including Coinbase & Polymarket, got the same letters. Connecticut has not said what their trading status is.

The hit

Gemini, ProphetX & WeBull have reportedly stopped offering sports event contract trading to Connecticut users, according to CT Insider’s Ken Dixon. The move follows cease-&-desist letters the Connecticut Department of Consumer Protection sent in September, accusing the operators of breaching state gambling law.

Why it matters

The three operators appear to be hedging against a courtroom loss rather than fighting outright. A loss for Attorney General William Tong, favourable rulings for Coinbase or the CFTC, or a Second Circuit reversal might give the three confidence to lift the restriction, according to the source, so the retreat may be temporary. For traders, it signals operators see real risk in state enforcement, not just noise.

The record

Cease-&-desist letters sent	9 exchanges, September (Connecticut Department of Consumer Protection)
Kalshi’s injunction bid	Denied by US District Court for Connecticut, now on appeal to the Second Circuit
Lawsuits filed	Coinbase & Kalshi sue Attorney General William Tong; CFTC & Department of Justice sue Connecticut on preemption grounds; Tong sues Kalshi
Other letter recipients	Coinbase, Crypto.com, Novig, Polymarket, Robinhood, Underdog Predict; status unstated by officials

What happens next

Watch the Second Circuit’s ruling on Kalshi’s appeal & district court moves in the other three cases, any of which could reopen or shut down Connecticut’s sports contract market.

Sources: DeFi Rate: Report says Gemini, ProphetX, WeBull have restricted trading in Connecticut

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