The Kalshi emblem organized on a laptop computer in New York, US, on Monday, Feb. 10, 2025.
Gabby Jones | Bloomberg | Getty Images
Massachusetts filed a lawsuit in state court docket Friday in opposition to Kalshi, alleging the predictions platform gives sports gambling with no license below the guise of occasions contracts.
“If Kalsi wants to be in the sports gaming business in Massachusetts, they must obtain a license and follow our laws,” Massachusetts Attorney General Andrea Joy Campbell stated in a news release.
The state can be asking the court docket to forestall Kalshi from providing sports events contracts in Massachusetts whereas the lawsuit is pending.
Events contracts are regulated as a predictions market by the Commodity Futures Trading Commission. Kalshi has repeatedly argued in federal court docket that the CFTC’s standing as a federal company supersedes state regulators.
In the temporary filed with the Suffolk County Superior Court, Massachusetts argues Kalshi is making extra money on sports wagers than authorized, licensed sportsbooks.
“Sports event wagers comprised approximately 70% of Kalshi’s trading volume between February 25, 2025, and May 17, 2025, which increased to 75% from March 18, 2025 onwards—Kalshi’s first day offering single-game March Madness markets,” the lawsuit says. “Kalshi made extra from sports wagers than licensed sports wagering platforms DraftKings or FanDuel over the course of the same February through May timeframe.”
A screenshot of the Kalshi platform included in a lawsuit by the state of Massachusetts in opposition to the predictions platform.
A Kalshi spokesperson advised CNBC this week that $439 million value of wagers had been positioned on NFL contracts so far.
The firm has been spearheading a nationwide protection of sports prediction trades. This week, the corporate made oral arguments earlier than the third Circuit Court of Appeals in an attraction by the state of New Jersey, which was prevented from imposing a stop and desist in opposition to Kalshi.