Massachusetts Sues Prediction Platform Kalshi,alleging Illegal Sports Gambling
BOSTON – Massachusetts Attorney General Andrea Campbell has filed a lawsuit against Kalshi,a New Jersey-based predictions platform,alleging the company is operating an illegal sports gambling operation within the state. The suit, filed in suffolk County Superior Court, claims Kalshi is offering contracts tied to the outcome of sporting events without a license, violating Massachusetts gambling laws.
The legal action comes as Kalshi actively defends the legality of its “event contracts” nationwide, arguing they are not conventional gambling but rather financial instruments based on the probability of future events. The Massachusetts case is especially significant as it challenges Kalshi’s expansion into new markets and could set a precedent for how these types of prediction markets are regulated. The company reported this week that $439 million worth of wagers have been placed on NFL contracts to date.
According to the complaint, Kalshi allows users to buy and sell contracts based on the outcomes of events, including NFL games. The state argues this constitutes illegal sports wagering, as kalshi is not licensed to operate a sportsbook in Massachusetts. The lawsuit seeks an injunction to halt Kalshi’s operations in the state and civil penalties for alleged violations of state law.
Kalshi has been engaged in a broader legal battle over its business model. This week, the company presented oral arguments before the 3rd Circuit Court of Appeals in an appeal brought by New Jersey, which previously attempted to issue a cease and desist order against the platform. A screenshot of the Kalshi platform included in the Massachusetts lawsuit depicts the platform’s interface.
