Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against Kalshi’s sports event contracts.
AG Campbell accuses the prediction markets platform of promoting and accepting online sports wagers from Massachusetts customers without following Massachusetts laws that govern sports betting, including licensure by the Massachusetts Gaming Commission.
The Attorney General’s Office alleges that Kalshi uses an online “exchange” to offer sports wagering, under the guise of “event contracts,” which allow bettors to place wagers through a “yes” or “no” option on the likelihood of whether an event will occur.
Kalshi sports betting markets include moneyline contracts, point spread contracts, and over-under contracts.
“Sports wagering comes with significant risk of addiction and financial loss and must be strictly regulated to mitigate public health consequences,” said AG Campbell. “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.”
The Massachusetts Attorney General’s Office also accuses Kalshi of bypassing consumer protections by allowing players aged 18 and over to place bets on sporting outcomes, despite the legal age for online sports betting in Massachusetts being 21 and older.
“Prediction market companies are expanding into sports wagering while neglecting age restrictions, player protection programs, state taxes, and other consumer protections,” said Massachusetts Gaming Commission Chair Jordan Maynard. “My fellow commissioners and I appreciate the Attorney General’s efforts to enforce the law and hold these companies accountable to Massachusetts’ rigorous standards.”
The lawsuit filed Friday in Suffolk Superior Court also requests that the court prohibit Kalshi from offering sports contracts in Massachusetts while the suit is pending.