Connecticut is suing online platform Kalshi, alleging the company is offering illegal, unlicensed sports betting in the state.
The lawsuit seeks to block Kalshi from continuing to offer what it calls "event contracts" tied to sports outcomes.
State officials argue those contracts are essentially sports wagers and do not comply with Connecticut's gambling laws.
The move comes weeks after New York's attorney general filed a similar lawsuit.
New York alleges Kalshi is operating illegal gambling activities in the state without a license.
Kalshi has denied the allegations.