Connecticut Crackdown on Prediction Markets, Playtech H1 Profits Soar

The regulatory landscape in the United States is shifting rapidly as established gambling giants reach new heights in revenue. The Connecticut Department of Consumer Protection (DCP) has initiated a massive enforcement wave against so-called prediction markets. Nine platforms, including well-known names like Polymarket, Coinbase, and Robinhood, have been ordered to immediately stop all advertising and the offering of sports event contracts to residents of the state. Authorities view these offerings as illegal, unlicensed gambling that violates existing gaming and unfair trade practices laws.

Parallel to this crackdown, software giant Playtech reported stellar results for the first half of 2026. The group increased its revenue to €425.1 million, representing a 10% increase compared to the same period last year. Particularly impressive is the growth in North America, where revenue skyrocketed by 176% to €56.9 million. Playtech emphasized that its U.S. business is now profitable, bolstered by successful launches with major partners such as FanDuel and Bet365.

Numbers and facts

The details of the regulatory measures in Connecticut are extensive. In addition to the nine platforms—Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini, and Underdog Predict—over 30 service providers have been targeted. Subpoenas for information were issued to financial service providers such as PayPal, Plaid, and Paysafecard, as well as media organizations including ESPN and Hearst Connecticut Media. Even tech giants like Apple and Google received subpoenas to investigate the distribution and promotion of these apps.

In Playtech's financial report, adjusted EBITDA stood out, jumping 77% to €162.5 million. In Latin America, the company recorded underlying growth of 29%, primarily led by markets in Mexico and Colombia. Meanwhile, the Financial Action Task Force (FATF) has issued a global warning regarding money laundering risks in online gambling. Red flags include sudden changes in account activity, the use of VPNs, or structured deposits just below reporting thresholds.

Background

The dispute over prediction markets like Kalshi or Polymarket centers on the definition of gambling. These platforms often argue they are merely facilitating the trading of event contracts, similar to commodity markets. However, regulators see this as a bypass of sports betting laws. In Connecticut, the situation is particularly tense as the state is already involved in litigation with the Commodity Futures Trading Commission (CFTC) and Coinbase. A specific focus is placed on protecting minors and customers who have self-excluded from gambling.

A curious case highlights the friction within the industry: U.S. Senate candidate Mark Robert Moran sued the Kalshi platform after being suspended for five years. Moran had bet on his own run for office and now claims he did so intentionally to test the provider's enforcement mechanisms.

"I bet on myself because I wanted to get caught to test Kalshi’s enforcement process." - Mark Robert Moran, U.S. Senate Candidate for Virginia

Why it matters for German players

For German players, the situation in Connecticut serves as a significant warning regarding unlicensed platforms. In Germany, the legal situation is clear under the State Treaty on Gambling 2021 (GlüStV 2021). Only providers listed on the official whitelist of the Joint Gambling Authority of the States (GGL) are legally allowed to offer online slots or sports betting. Prediction markets offering bets on political or social events are generally not permitted in Germany, as the GlüStV strictly limits sports betting to athletic competitions.

German users should strictly ensure they only play with providers connected to LUGAS. This guarantees compliance with the €1,000 monthly deposit limit and the €1 per spin limit for virtual slot machines. Platforms like Polymarket or Crypto.com do not hold a German gambling license and offer no protection through the OASIS exclusion system. Anyone betting there operates in an illegal space and has no legal recourse in Germany in the event of a dispute.

What it means for GGL-licensed casinos

Regulated GGL casinos benefit indirectly from tough measures against unlicensed competitors. When authorities worldwide take action against shadow markets, it strengthens trust in the legal market. Playtech, as a major supplier to licensed operators, demonstrates that success is possible within a regulated framework. However, German operators must remain vigilant against money laundering indicators, as recently clarified by the FATF. The integration of responsible gaming tools, such as the NFL-themed Gamalyze introduced by DraftKings and Mindway AI, will become increasingly important for the German market to meet the strict requirements of player protection.