Kalshi Faces Lawsuit from Massachusetts Over Sports Betting Allegations
- Massachusetts filed a lawsuit against Kalshi, alleging unlicensed sports betting disguised as “event contracts.”
- The lawsuit claims over three-quarters of Kalshi’s trading volume comes from sports, exceeding that of DraftKings and FanDuel.
- Kalshi argues it is regulated by the Commodity Futures Trading Commission (CFTC), not state gambling laws.
- The company has faced cease-and-desist orders from multiple states, including Arizona and Illinois.
- Polymarket, another prediction market platform, is reportedly preparing to launch in the US amid this legal climate.
Kalshi’s legal battle highlights ongoing tensions between emerging prediction markets and existing state gambling regulations. The company asserts that its innovative model should be accessible to all Americans despite regulatory pushback.
As of May, over three-quarters of Kalshi’s trading volume was attributed to sports activities, raising significant concerns under Massachusetts law regarding unlicensed wagering.(Source)
