Underdog has sued Connecticut officials in federal court, seeking to prevent the state from treating its sports event contracts as illegal gambling and to block enforcement of state gambling rules against the products. The company says its federally regulated designated contract market falls under the Commodity Futures Trading Commission’s exclusive jurisdiction under the Commodity Exchange Act. The lawsuit follows Connecticut cease-and-desist orders issued to nine prediction market platforms, including Underdog, Polymarket, Coinbase, Crypto.com and Robinhood, for offering sports event contracts without state gambling licenses. Underdog has now challenged enforcement in six states, including Ohio, Massachusetts, Wisconsin, New Mexico and Washington. The dispute is part of a broader legal conflict in which courts have reached differing conclusions about whether federal commodities law preempts state regulation of sports prediction contracts. Connecticut has also sued Kalshi, while the CFTC and Department of Justice have challenged enforcement actions by Connecticut, Illinois and Arizona. Underdog’s legal campaign comes as it is being acquired by UK-based IG Group for up to $1.3 billion and as prediction-market trading volume expands.