Connecticut is considering increasing the minimum age limit for accessing prediction platforms from 18 to 21 via a new Bill, HB 5038. The Bill expressly excludes certain types of traditional gambling from its measures, including sports wagering and online casino gaming in Connecticut.
If passed, Connecticut would stand among the first states to modify the legal age requirement for those registering with Kalshi, Polymarket and similar trading operators.
A Bill hearing was held on February 18, 2026, and the proposal now awaits a vote in the Joint General Law Committee before advancing.
Governor seeking greater controls over prediction markets
Governor Ned Lamont introduced HB 5038 in an effort to mitigate the sharp rise of contract-based prediction markets, where people can 'buy' shares of a particular outcome occurring.
In addition to changing the minimum legal age limit to 21, Gov. Lamont's proposal seeks to control marketing opportunities for prediction platform operators.
Specifically, HB 5038: "Targets any system that allows consumers to open a speculative position on the outcome of future events, in a bid-ask format, regardless of the mechanisms or structures used for opening speculative positions on future events."
What does HB 5038 propose?
Several crucial modifications are presented by HB 5038:
Notably, prediction platforms would be required to integrate age and location verification systems to ensure that all customers are at least 21 years-old and physically located within Connecticut while engaging with the platform.
Player safety protocols are also outlined – if passed, HB 5038 would force all prediction platforms to develop voluntary self-exclusion processes. Under these terms, players must be allowed to limit spending, set constraints on certain positions and set barriers against creating an account.
Should an operator inadvertently onboard a customer who does not meet the new minimum age threshold for trading derivatives, the platform-holder must immediately carry out the following:
- Suspend the individual's account.
- Close all positions tied to that account.
- Release all funds held in the account to the individual.
- Prevent the individual from accessing platform features until they have reached the minimum age limit.
Marketing limits to be enforced from 2027
Strict advertising provisions will come into effect from July 1, 2027, if HB 5038 is confirmed as law under its current guise.
All advertisements must specify the minimum age requirement for using prediction platforms. This measure applies to all forms of marketing, including text and email promotions. Further, recipients must receive a link to unsubscribe from promotional content.
As per HB 5038, platforms would also be barred from publishing advertisements directed at individuals attending college campuses, under 21 or actively self-excluding from such services.
Interestingly, Gov. Lamont's Bill outlaws celebrity endorsements where the featured person is popular among young age groups.
Other rules include restrictions against advertising where those aged under 21 are the primary audience and social media barriers.
Offending platforms subject to State punishment
Prediction platform operators found to break any of the aforementioned accords may be charged $10,000 per violation. If the Attorney General finds that the guilty party has carried out repeat offenses, a $50,000 penalty may be issued for each infraction.
But one highly relevant stipulation could prevent Connecticut prosecutors from issuing penalties. According to HB 5038, if any provision is "preempted by conflicting federal law", State punishments shall not be enforced.
This is particularly pertinent, as one core argument stemming from prediction platforms is that federal rulings always preempt state statutes.
The Commodity Futures Trading Commission (CFTC) regulates activities undertaken by trading platforms. In a recent statement, the federal organization's Chair Michael Selig confirmed that his team would engage in legal disputes where necessary.
It could be that Selig's unit leverages that 'preempt' stipulation in any potential court battle against the State.
Layered study to analyze impact of prediction platforms
The final section of HB 5038 describes a statewide study covering the effects of prediction platforms in Connecticut. Set to commence from July 1, 2026, the analysis would see the Commissioner of Consumer Protection, Attorney General, Mohegan Tribe and Mashantucket Pequot Tribe collaborate to evaluate tangible societal influences directly driven by prediction services.
The study focuses on six primary areas:
- Usage of prediction platforms by underage individuals.
- Advertisements distributed to underage individuals.
- Effects of prediction platforms on problem gambling in Connecticut.
- Popular markets among residents.
- Impacts of prediction platforms on licensing revenue.
- Whether prediction platforms impact payments from gambling licensees.
Results of this report must be released by February 1, 2027.
Tribes fear Bill creates "confusion"
The Mohegan Tribe and Mashantucket Pequot Tribe hold exclusive rights to online casino gaming, retail casino gambling and sports wagering.
Gov. Lamont's HB 5038 has generated anxiety among these Tribal groups, as both argue that the motion introduces unnecessary confusion for residents who might not understand important differences between gambling and derivatives trading.
In a joint statement, the two tribes voiced concerns around player safety due to the introduction of what they branded as an "unregulated" market:
"By regulating an activity that is illegal, Connecticut creates confusion and gives the false impression that prediction markets are permissible.
"Prediction markets would introduce an unregulated, untaxed gaming product in Connecticut that runs counter to our state's established standards for consumer protection, integrity and oversight, and longstanding tribal-state partnership in gaming."
Gov. Lamont's office responded to the statement by defending the Bill's framework, explaining that HB 5038 enforces adequate protective mechanisms aligned with the Connecticut gaming industry.
"We appreciate the concerns raised by the Mashantucket Pequot Tribal Nation and the Mohegan Tribe, and recognize the importance of Connecticut's longstanding tribal-state gaming partnership.
"(House Bill) 5038 is intended as a narrow consumer-protection measure. It does not authorize, license or legalize prediction markets. Rather, it establishes age and advertising guardrails focused on preventing access by minors."
To succeed, HB 5038 must advance through ballots in the Joint General Law Committee, as well as two chambers, before being signed by Gov. Lamont.
