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Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against prediction markets platform KalshiEX, claiming the company has been running unlicensed sports betting in the state. The complaint was submitted in Suffolk Superior Court on September 12 and asks that Kalshi be barred from operating until it complies with Massachusetts law.
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Campbell argued that Kalshi sidestepped the state’s strict sports betting framework, which requires operators to obtain a license through the Massachusetts Gaming Commission (MGC). “Sports wagering comes with significant risk of addiction and financial loss and must be strictly regulated to mitigate public health consequences,” she said.
She added that the lawsuit is meant to ensure proper oversight:
“This lawsuit will ensure that if Kalshi wants to be in the sports gaming business in Massachusetts, they must obtain a license and follow our laws. I am grateful for the ongoing partnership with the Gaming Commission.”
The Attorney General’s office claims Kalshi presented wagers as “sports events contracts” on its exchange platform, letting consumers bet “yes” or “no” on whether an event would occur. Officials noted these products operate in a way that “closely resemble sports wagers offered by licensed operators.”
According to the complaint, the platform not only offered these contracts but also promoted them on television, social media, and even through trading platforms like Robinhood, widening its reach to retail investors.
Massachusetts Gaming Commission Chairman Jordan Maynard welcomed the legal action, stating: “Prediction market companies are expanding into sports wagering while neglecting age restrictions, player protection programs, state taxes and other consumer protections. We look forward to our continued partnership with Attorney General Campbell and her office.”
The lawsuit emphasizes that Kalshi has not applied for or received a sports wagering license from the MGC, a mandatory step for any operator conducting business in the state. Regulators also allege Kalshi failed to implement key consumer protections such as self-limiting tools, age verification, and compliance checks that licensed operators are required to uphold.