Comptroller Sean Scanlon's latest economic update warns that platforms like Kalshi and Polymarket are fueling gambling addiction and insider trading — and could eventually eat into the $110 million in tax revenue Connecticut collects from licensed sports betting.
Prediction markets have exploded in popularity over the past couple of years. Users can bet on the outcomes of everything from elections to sports to award shows.
A bipartisan group of state lawmakers has backed legislation that would significantly increase and redistribute municipal aid linked to tribal casino revenue, restoring funding to dozens of municipalities that have gone without it for years.
Connecticut’s effort to shut down unlicensed prediction market platforms has triggered a federal lawsuit, escalating a dispute over whether those products are gambling or federally regulated financial instruments.