Massachusetts Attorney General sues Kalshi for illegal sports wagering operations
Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit in Suffolk Superior Court against prediction market Kalshi for unlawfully promoting and accepting online sports wagers.
The lawsuit, which was filed on Friday, alleges that Kalshi offers sports wagering under the guise of event contracts, which allow bettors to place wagers through a ‘yes’ or ‘no’ option on the likelihood of an event occurring.
The lawsuit requests that the court order Kalshi to cease offering sports wagering in Massachusetts while it is pending.
Kalshi’s contracts, which are offered on sporting events, including moneyline contracts, point spread contracts, and over-under contracts, closely resemble sports wagering offered by licensed operators.
In fact, last week the American Gaming Association released survey results that showed that most Americans believe that sports events contracts offered through prediction markets should be regulated in the same way as other forms of legal sports betting.
Kalshi actively promotes its offerings on television and social media and allows trading through platforms like Robinhood. The prediction market has not applied for a sports wagering license from the Massachusetts Gaming Commission, as required by law. But it is regulated by the Commodity Futures Trading Commission.
The Attorney General alleges that Kalshi’s unlawful sports wagering operation bypasses the consumer protections required of licensed sports wagering operators. She also highlighted that Kalshi allows users between the ages of 18-21 to bet, despite the legal age for sports wagering online in Massachusetts being 21.
The prediction platform was further chastised for not providing safeguards to educate users about the risks of sports wagering. For example, it doesn’t provide compliant deposit limits or maximum wagers.
“Sports wagering comes with significant risk of addiction and financial loss and must be strictly regulated to mitigate public health consequences,” said Campbell. “This lawsuit will ensure that if Kalshi wants to be in the sports gaming business in Massachusetts, they must obtain a license and follow our laws. I am grateful for the ongoing partnership with the Gaming Commission.”
Massachusetts Gaming Commission Chair Jordan Maynard added, “Prediction market companies are expanding into sports wagering while neglecting age restrictions, player protection programs, state taxes, and other consumer protections. My fellow commissioners and I appreciate the Attorney General’s efforts to enforce the law and hold these companies accountable to Massachusetts’ rigorous standards.”
In June, Campbell issued cease-and-desist letters to two online gaming operators for offering online gambling and betting products without obtaining a license.
In March of 2024, Campbell announced the formation of the Youth Sports Betting Safety Coalition, a private-public partnership to raise awareness about the laws and risks surrounding youth online sports gambling.
Dig deeper
2025/08/22: Ho-Chunk Nation sues Kalshi, alleging illegal sports betting
2025/08/25: Robinhood may circumvent state ban on Boston College football wagers
2025/06/12: Kalshi director and CFTC nominee advocates for prediction markets
2025/06/09: New York Attorney General halts 26 sweepstakes operations in the state
