Massachusetts Attorney General (AG) Andrea Joy Campbell has filed a lawsuit against Kalshi for “promoting and accepting online sports wagers” without a licence.
The AG filed the lawsuit in the Suffolk Superior Court, alleging the New York-based prediction market is using an online exchange to offer sports betting “under the guise of event contracts”.
The lawsuit claims that the event contracts offered by Kalshi closely resemble sports betting markets offered by licensed firms, including money line and over/under.
Campbell has requested the court order Kalshi to cease its offering in Massachusetts while the lawsuit is pending.
The AG has also taken umbrage with Kalshi “unlawful sports wagering operation” for circumventing “key consumer protections”.
Those include allows customers aged 18 to 20 to use its platform. The minimum gambling age in Massachusetts is 21.
The AG also said Kalshi “provides few safeguards to educate users about financial responsibility or the risks of sports wagering” and that its responsible gambling tools “fall far short”.
A lack of appliable limits, such as maximum deposits or wagers, were also cited by Campbell in the 44-page filing.
Kalshi does not hold a licence from the Massachusetts Gaming Commission (MGC), the entity that regulates sports betting in the Bay State.
Massachusetts is home to DraftKings, FanDuel, ESPN Bet, Bally’s, Fanatics, Caesars and BetMGM.
Kalshi has previously argued that it is regulated at the federal level by the Commodity Futures Trading Commission (CFTC).
However, state-level gaming regulators including those in Nevada, Maryland and New Jersey have pushed back against the stance, claiming sports event contracts are a form of sports betting.
Campbell said: “Sports wagering comes with significant risk of addiction and financial loss and must be strictly regulated to mitigate public health consequences.
“This lawsuit will ensure that if Kalshi wants to be in the sports gaming business in Massachusetts, they must obtain a licence and follow our laws. I am grateful for the ongoing partnership with the Gaming Commission.”
Jordan Maynard, MGC chair, 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.
“We look forward to our continued partnership with Attorney General Campbell and her office.”
The post Kalshi hit with lawsuit by Massachusetts AG over alleged sports betting offering first appeared on EGR Intel.
Prediction market slammed for lack of MGC licence, offering markets similar to those from licensed operators and lack of RG tools
The post Kalshi hit with lawsuit by Massachusetts AG over alleged sports betting offering first appeared on EGR Intel.