Underdog sues Connecticut over sports contracts

• Underdog has sued Connecticut officials over state efforts to stop its sports event contracts.
• The company argues federal commodities law gives the CFTC exclusive jurisdiction over its designated contract market.
• Connecticut has ordered nine prediction platforms to stop offering sports contracts to state residents.

Underdog has sued Connecticut officials in federal court over its sports event contracts.

The company wants the court to block Connecticut from treating those contracts as illegal gambling.

Underdog has argued that federal law gives the CFTC “exclusive jurisdiction” over trading on its designated contract market.

Connecticut issued cease-and-desist orders last week to nine prediction platforms, including Underdog, Coinbase, Crypto.com and Robinhood.

The state has ordered those platforms to stop offering sports event contracts to Connecticut residents.

Connecticut has said sports betting must be offered by licensed sportsbooks that meet state regulations and technical standards.

Underdog has also challenged enforcement in Ohio, Massachusetts, Wisconsin, New Mexico and Washington as the dispute over sports prediction contracts expands.