Connecticut lawmakers greenlight tighter betting integrity rules and prediction market review

(AsiaGameHub) –   The measures include stricter integrity rules for sports betting, new advertising restrictions and a statewide study on the impact of prediction markets.

US.- Connecticut lawmakers have approved a series of changes to the state’s sports betting framework, sending two new bills to Governor Ned Lamont on the final day of the legislative session. The measures include new integrity rules, advertising restrictions linked to colleges and a formal study into the impact of prediction markets.

House Bill 5229 introduces new requirements for licensed operators, bans sports betting advertising on college campuses and obliges operators to maintain customer service phone lines instead of relying exclusively on online chat support.

The bill also orders a statewide study into prediction markets and their impact on Connecticut residents. Under the proposal, the Commissioner of Consumer Protection will work alongside the attorney general, the Connecticut Lottery Corporation and the state’s tribal gaming operators to evaluate the sector.

The inspection, expected by February 2027, will examine several issues, including the use of prediction markets by people under 21, advertising exposure to younger audiences, links to problem gambling, impacts on licensed gambling revenue and possible effects on state tax collections.

The debate comes amid legal battles over the regulation of prediction markets in the United States. Earlier this year, the Commodity Futures Trading Commission (CFTC) sued Connecticut, Arizona and Illinois after the states attempted to restrict operators such as Kalshi, Crypto.com and Robinhood from offering sports-related event contracts without local authorisation.

Connecticut had issued cease-and-desist orders, arguing that the products effectively constituted unlicensed sports betting. Kalshi filed a lawsuit against the state in response.

Senate Bill 296 is intended to strengthen sports betting integrity by expanding the state’s definition of cheating to include match-fixing, collusion and the use of confidential information connected to sports wagering. It updates a law originally passed before sports betting became legal in Connecticut in 2021.

Under the revised framework, offences linked to the manipulation of sports betting outcomes could carry penalties of up to five years in prison, fines of up to US$ 5,000 or both. The bill passed unanimously in both legislative chambers.

Meanwhile, lawmakers removed a proposed restriction that would have prevented operators from allowing customers to cancel pending withdrawal requests.Industry representatives argued that reversing a withdrawal is not necessarily linked to problematic gambling behaviour. FanDuel said the measure would have created operational burdens while limiting consumer control over personal funds.

The legislative debate coincided with renewed criticism of the sports betting industry from Connecticut Senator Richard Blumenthal, who spoke at Sacred Heart University about the risks associated with gambling products and aggressive marketing strategies. Blumenthal referenced polling data showing that 37 per cent of respondents aged between 18 and 34 believed sports betting had negatively affected their personal relationships, while 45 per cent said they knew someone harmed by gambling activity.

The senator, who has repeatedly supported stricter federal oversight of gambling advertising and prop bets, argued that operators increasingly target losing bettors with additional promotions and betting offers. “My advice to everyone, especially young people, is to learn more about the industry and how their technology and tactics are designed to exploit weaknesses,” Blumenthal said. “They don’t want more bets from winners, they want to promote bets to people who are losing.”