- HB 5529 and SB 296 implement new rules regarding Connecticut sports betting regulation, consumer protection, help lines, criminal punishment for match fixing, and more.
- The signing of HB 5529 also approved a study on the effects of prediction markets in the state.
- Governor Ned Lamont signed SB 296 on Tuesday and HB 5529 on May 19.
HARTFORD, Conn. – A pair of Connecticut sports betting bills were signed into law by Governor Ned Lamont that attempt to make betting on sports safer. The pair of bills combine to require Connecticut sports betting operators to offer a support line, add more provisions under the state’s cheating laws, restrict sports betting ads on college campuses, and conduct a study on the impacts of prediction markets.
Tuesday’s signing of SB 296 established stronger consumer protection in relation to sports betting. This bill focuses on sports betting integrity in the state by adding match fixing, collusion, and insider information to the crime of cheating definition, which was passed long before sports betting back in 1998.
This makes rigged sports wagers a felony offense, with offenders facing up to five years in prison and a fine up to $5,000. Meanwhile, House Bill 5529 cracks down on sports betting advertisements on college campuses and requires betting operators to have a customer service number for person-to-person communication.
HB 5529 Also Approves Prediction Market Study
One underreported portion of HB 5529 is that it requires the Commissioner of Consumer Protection to study the effects of prediction markets. This will be conducted alongside the Connecticut Lottery, the attorney general, the Mohegan Tribe, and the Mashantucket Pequot Tribe.
The study is due on February 1, 2027 and analyzes the effects of prediction markets on a handful of specific topics:
- Use of prediction market platforms by persons under the age of 21
- Advertisement of prediction market platforms to persons under the age of 21
- Effects of prediction market platforms on problem gambling in this state
- Most frequently placed speculative positions on prediction market platforms by persons in this state
- Effects of prediction markets on revenue collected by the master wagering licensees
- Effects of prediction markets on any payments to the state by the master wagering licensees
It’s no surprise that Connecticut wants to mount evidence against prediction markets considering their ongoing legal battles. Connecticut issued cease-and-desist letters to Kalshi, Crypto.com, and Robinhood for offering contracts that resemble legal sports betting, claiming these prediction markets offered unlicensed sports wagering. Kalshi and the Commodity Futures Trading Commission sued the state.
