Massachusetts AG Sues Kalshi Over Alleged Illegal Sports Betting Operations

Prediction market platform Kalshi faces legal action from Massachusetts Attorney General Andrea Joy Campbell, who alleges the company's sports event contracts violate state gambling laws. The lawsuit, filed Friday, seeks to block Kalshi from offering unlicensed sports prediction markets in Massachusetts.

Kalshi's January 2025 launch of sports-related binary options mirrors licensed sportsbooks like FanDuel, according to the filing. While the platform offers diverse prediction markets, including political outcomes, the state's focus remains squarely on its sports wagering operations.

The case highlights growing regulatory scrutiny of prediction markets, which have gained popularity through crypto-native platforms like Polymarket and traditional operators. Massachusetts law requires formal licensing for all sports betting operators, a requirement Kalshi allegedly circumvented with its contract-based model.