Massachusetts files lawsuit against Kalshi

Legal

Massachusetts is the latest state to take aim at Kalshi, filing a lawsuit Friday that claims the company’s sports event contracts are indistinguishable from traditional sports bets offered by licensed operators, in violation of state law.

The suit from Massachusetts Attorney General Andrea Joy Campbell today, filed in Suffolk Superior Court, says Kalshi “disguises its sports wagering offerings as ‘event contracts’ offered on a ‘prediction market.’”

The suit also alleges that Kalshi has failed to implement necessary protections that are required by licensed operators—for example, Kalshi allows anyone 18 or older to trade on its platform, while the legal age for online sports betting in Massachusetts is 21; and it does not adequately provide self-limiting options, such as maximum deposits or wagers.

Massachusetts is one of 38 U.S. states in which some form of sports betting is legal, having legalized the practice in 2022.

The AG is asking the court to rule that Kalshi is operating an illegal sports betting platform. It also seeks monetary relief “in an amount to be determined at trial,” and wants Kalshi “permanently” barred from offering sports event contracts in the state. Additionally, the AG wants a court order that Kalshi must “cease offering sports wagering in Massachusetts while the lawsuit is pending.”

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