Key Moments:
- Legislature reviewed HB 5038 to raise the minimum age for prediction-market users from 18 to 21
- Bill proposes stricter age verification, location checks, and marketing restrictions on platforms
- State regulators ordered several major firms to cease unlicensed prediction-market operations
Legislative Push for Higher Age and Stricter Marketing
Connecticut lawmakers are considering a new proposal that would increase the minimum age for prediction-market platforms from 18 to 21. The measure, outlined in HB 5038 and discussed by the General Law Committee on February 18, aims to address rising concerns over high-frequency trading among younger participants. Testimony highlighted that platforms often feel accessible and encourage repeat usage, prompting fears that younger users may be particularly vulnerable—regardless of whether these activities are branded as “contracts” instead of bets.
If enacted, the bill would require prediction-market companies to ensure that users are both over 21 and physically present in Connecticut before allowing participation. Additionally, the proposal calls for age and location verification to enforce compliance. The legislation also seeks to curb marketing strategies perceived as targeting younger audiences, including advertising associated with college campuses.
Expanding Oversight to Non-Sports Event Markets
Lawmakers have taken issue with prediction markets that branch out beyond sporting events. These platforms have hosted contracts tied to political outcomes and celebrity news, including bets regarding specific phrases in official public speeches. For instance, one recent market let users speculate on which words Governor Ned Lamont would use during his State of the State address, highlighting the rapid expansion of such markets into civic and cultural life.
Comprehensive Advertising Restrictions Proposed
The scope of HB 5038 extends beyond setting age limits. The legislation aims to restrict platform promotions employing youth-oriented content, marketing near colleges, and outreach efforts that may appeal to individuals who have opted for self-exclusion. Additionally, the bill proposes clearer disclosures in advertising and user-friendly options to opt out of direct marketing communications.
Regulatory Orders and Ongoing Federal Actions
The Connecticut Department of Consumer Protection has already taken steps ahead of any new legislation. On December 3, 2025, the agency directed Kalshi, Robinhood’s derivatives arm, and Crypto.com to halt what it described as unauthorized online gambling through sports event contracts. Commissioner Bryan T. Cafferelli reinforced that only licensed providers are permitted to offer sports betting in the state. Gaming Division Director Kris Gilman commented, “A prediction market wager is not an investment.”
At the federal level, the Commodity Futures Trading Commission (CFTC) maintains that oversight of event contracts falls under its jurisdiction rather than state gaming regulators. CFTC chair Michael Selig stated, “We will see you in court,” as the debate over legality continues both in legislative chambers and in the courts.
Table: Key Aspects of Connecticut’s HB 5038
| Provision | Description |
|---|---|
| Minimum Age | Raises eligible age from 18 to 21 for prediction market participation |
| Verification Requirements | Mandates checks for age and Connecticut location prior to trading |
| Advertising Rules | Restricts content targeting youth, college-related marketing, and promotions for self-excluded users; requires transparency and opt-out options |
| Recent State Actions | Department of Consumer Protection ordered Kalshi, Robinhood’s derivatives arm, and Crypto.com to suspend unlicensed prediction-market activity |
| Federal Position | CFTC asserts regulatory authority, ongoing legal disputes with states |
- Author
Daniel Williams
