Massachusetts Attorney General Sues Kalshi Over Illegal Sports Gambling

Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against Kalshi, alleging that the prediction market platform is operating an illegal sports wagering business without a state license. The suit claims that Kalshi's sports event contracts function as unlicensed sports bets, similar to those offered by licensed sportsbooks like FanDuel and DraftKings. Massachusetts argues that Kalshi's sports wagers make up the majority of its trading volume and revenue, exceeding that of licensed competitors during the early months of 2025. The lawsuit highlights Kalshi's use of behavioral design features that may encourage impulsive gambling and diminish users' perception of risk. Kalshi has faced similar legal challenges in other states, including cease-and-desist orders and ongoing litigation, as courts continue to debate the distinction between prediction markets and sportsbooks. Massachusetts is seeking a court order to block Kalshi from operating its sports trading platform in the state until the company obtains the proper licensing and complies with regulations.