ESPN, the controversial sports and gambling network, was served a subpoena this week in Connecticut as part of the state’s investigation into prediction-market gambling.
Kalshi advertising has appeared during ESPN’s U.S. Open tennis coverage through the courtside signage visible during matches.
The Disney-owned network, based in Bristol, Connecticut, was among 15 media organizations to receive subpoenas.
“Businesses that received subpoenas are not under investigation … but may possess information pertinent to the state’s investigation into illegal prediction market operations in Connecticut,” stated a Sept. 10 announcement from Gov. Ned Lamont, a Democrat.
ESPN has a partnership with DraftKings, which offers house-banked sports gambling in Connecticut and operates a sports prediction market in states without legal sports betting.
CT Targets Prediction Markets
The Connecticut Department of Consumer Protection also announced it issued cease-and-desist orders to nine prediction market companies. Those under investigation include Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini, and Underdog Predict.
Notably absent were DraftKings and FanDuel, as neither firm operates its sports prediction market in the state.
Separately, Connecticut has sued Kalshi, the largest prediction market operator by activity, and sought a court injunction to block the platform from offering unlicensed sports wagers. Kalshi’s sports markets have been blocked in other states, such as Michigan, Nevada, Massachusetts, and Washington.
ESPN Airing Kalshi Ads
At the time of Connecticut’s cease-and-desist orders and subpoenas, ESPN was broadcasting the USTA’s U.S. Open, while Kalshi had signage at the prestigious New York City tennis tournament. Kalshi has a partnership with USTA, not ESPN.
It’s unclear whether anyone at Disney or ESPN has equity in a prediction market, as private-company ownership isn’t fully transparent. Donald Trump Jr. has publicly disclosed equity in Kalshi, and an investor group he’s part of has a large stake in Polymarket.
Other companies to receive Connecticut subpoenas related to its prediction markets investigation included payment processors and app stores.
“When we legalized sports wagering in 2021, the goal was to create a safe, responsibly regulated market for Connecticut consumers, not to open a free-for-all,” Gov. Lamont said in a statement.
Despite regulation in Connecticut and elsewhere, sports gambling has become the “new opioid crisis,” according to a former U.S. Surgeon General.
Photo: ESPN headquarters via Wikimedia Commons.
