Underdog sues Connecticut to block enforcement against sports prediction markets

Sports betting firm Underdog has filed a lawsuit against Connecticut officials to prevent the state from classifying its sports event contracts as illegal gambling. Underdog argues that as a federally regulated designated contract market (DCM), it falls under the exclusive jurisdiction of the CFTC. This follows cease-and-desist orders issued by Connecticut to nine platforms, including Polymarket, Coinbase, and Robinhood. Underdog has also initiated similar legal actions in five other states.