CFTC Seeks Injunction Against Connecticut Prediction Market Enforcement with Robinhood Intervention
The CFTC filed for a preliminary injunction on Sept. 11 to block Connecticut from enforcing gambling laws on prediction markets after cease-and-desist orders to nine platforms and nearly 30 subpoenas. Robinhood moved to intervene the same day. This escalates a dispute already featuring Kalshi and Coinbase actions.
SCCG Take — Federal preemption arguments gain ground in Connecticut, but fragmented court outcomes mean operators should anticipate prolonged uncertainty pending Supreme Court review.
The Commodity Futures Trading Commission (CFTC) has filed a motion for a preliminary injunction to prevent Connecticut from enforcing its gambling laws against prediction markets. The filing occurred on Sept. 11 in the U.S. District Court for the District of Connecticut. It directly responds to the state’s cease-and-desist orders against nine prediction market platforms along with nearly 30 subpoenas.
The same day, Robinhood requested to intervene in the CFTC lawsuit against the state. The exchange received one of Connecticut’s cease-and-desist orders and cited a direct interest in the outcome. Connecticut does not oppose the intervention.
This follows a federal judge’s denial of Kalshi’s preliminary injunction request in August, after which the state filed an enforcement lawsuit against the exchange. Coinbase has sued Connecticut in a separate action that has been stayed.
Federal Push Meets State Enforcement
The CFTC motion asserts federal authority under the Commodity Exchange Act against state gambling regulations. Robinhood’s intervention adds a major market participant to the federal side of the dispute. According to reporting by Gambling Insider, these steps expand what has become a high-profile test of regulatory boundaries for prediction markets.
Next Steps in the Connecticut Clash
Conflicting rulings in other jurisdictions signal that the legal patchwork will persist without higher-court intervention. Operators and platforms face ongoing enforcement risks in the interim. The case trajectory points toward further appeals and potential Supreme Court involvement to resolve the preemption questions.
Reporting: Gambling Insider
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Federal authority meets state gambling enforcement head-on; expect a long court battle and no clarity until higher courts weigh in.
We work with operators and platforms navigating exactly this kind of regulatory collision — state gambling rules versus federal commodity law. Connecticut issued nearly 30 subpoenas and nine cease-and-desist orders, and now the CFTC and Robinhood are fighting back. This is the clearest preemption battle in prediction markets yet, and it will shape how every platform operates until courts settle it.
- CFTC filed for preliminary injunction Sept. 11 to block Connecticut enforcement; Robinhood moved to intervene same day
- Connecticut issued cease-and-desist orders to nine platforms and nearly 30 subpoenas, triggering federal pushback
- Conflicting rulings in other jurisdictions signal prolonged uncertainty and likely Supreme Court involvement
SCCG angle: SCCG has advised platforms and operators through federal-state conflicts in gaming and commodities for three decades. When a client faces a cease-and-desist or subpoena in a preemption dispute like this, we coordinate regulatory counsel, connect them with the right federal and state voices, and help them map enforcement risk across every jurisdiction they touch.
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