Massachusetts Attorney General Claims Kalshi is Breaching State Sports Betting Laws
The attorney general of Massachusetts, Andrea Joy Campbell, has filed a lawsuit alleging that Kalshi’s sports prediction markets violate state gambling regulations by operating without the necessary licenses.
Key Points:
- Massachusetts authorities are pursuing legal action against Kalshi, citing unapproved sports betting practices.
- The lawsuit contends that the prediction markets, which Kalshi launched in January 2025, breach existing sports wagering laws requiring operators to hold valid licenses.
Kalshi’s contracts for sporting events are said to function similarly to those of licensed sports betting operators, highlighting the state’s concerns regarding unauthorized gambling activities. The company argues that it adheres to transparency and regulatory guidelines.
Campbell asserted, “For Kalshi to engage in sports gaming within Massachusetts, it must obtain a license. This type of wagering entails significant risks, necessitating stringent regulations to mitigate potential public health issues.”
In response, a Kalshi representative stated, “Kalshi offers users a fair and transparent marketplace. Rather than collaborating like other states have, Massachusetts is attempting to hinder our innovations by relying on outdated regulations.”
Prediction markets are a growing sector, with companies like Kalshi offering various betting options that draw significant user interest. The case emphasizes the ongoing debates about gambling laws in a rapidly changing digital landscape.
