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During the second half of 2026, prediction markets have endured the wrath of a plethora of state governors, most notably Kathy Hochul of New York.

As the NFL season begins, a state in close proximity to the New England Patriots became the latest to attempt to curb the influence of the trading platforms. On 10 September, one day after the Pats’ season-opening loss to the Seattle Seahawks, Connecticut Governor Ned Lamont addressed the growth of the markets during a speech in downtown Hartford. On the same day, the Connecticut Department of Consumer Protection issued cease-and-desist orders to nine unregulated operators, including Polymarket, Robinhood and Underdog Predict.

“Prediction markets have branded themselves as legal and safe, but the reality is they are not adhering to Connecticut’s consumer protection standards,” Lamont wrote in a statement.

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The federal government says a California tribe opened a short-lived casino despite repeated warnings that its legal authority to operate was under review.

On Friday, a Department of Justice attorney told a federal judge that the Scotts Valley Band of Pomo Indians knew the Interior Department could reverse an earlier determination that its Vallejo land was eligible for gaming.

Despite those warnings, the tribe opened its “Preview Casino” on July 24, offering Class II gaming out of modular structures.

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Rather than a crackdown across the board, what emerged was a more regulated renewal framework.

Of the KSA’s update, Fuchs said: “If you [as an operator] have a clean sheet, there are some hoops, but for various modules you can just send a declaration which states that you’re compliant.”

He emphasised the new system would make burdens less demanding than before, but the new ‘exit plan’ requirement and sharper duty‑of‑care definitions do bring some added complexity.