Massachusetts AG Sues Prediction Market Kalshi Over Alleged Sports Gambling Violations

Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against prediction market platform Kalshi, alleging its sports event contracts violate state gambling laws. The legal action seeks to halt unlicensed sports wagering operations and demands monetary penalties.

Kalshi, which launched sports prediction markets in January 2025, faces allegations that its binary options products function identically to licensed sportsbooks. The complaint specifically compares Kalshi's model to FanDuel's regulated offerings.

While prediction markets have gained traction across political and crypto sectors through platforms like Polymarket, Massachusetts authorities are narrowly targeting sports-related contracts. The case could establish important precedents for how states regulate emerging prediction market technologies.