Massachusetts sues Kalshi for illegal sports games
The Kalshi logo arranged on Monday, February 10, 2025, on a laptop in New York, USA.
Gabby Jones | Bloomberg | Getty pictures
Massachusetts submitted a lawsuit to the state court against Kalshi on Friday, in which the prediction platform was claimed to offer sports games without a license under the guise of event contracts.
“If Kalsi wants to be in the sports game business in Massachusetts, they have to receive a license and follow our laws,” said Andrea Joy Campbell, Attorney General of Massachusetts, in a press release.
The state also asks the court to prevent Kalshi from preventing sporting contracts in Massachusetts while the lawsuit is pending.
On Monday, Robinhood sued the state of Massachusett in expectation that it was the next processes against predictive markets. Robinhood offers its customers and sports transactions event contracts via the Kalshi platform and argued: “Massachusetts’ lawsuit and injunction could cause reputation damage and potentially criminal or civilian punishments.”
Event contracts are regulated by the Commodity Futures Trading Commission as a predictive market. Kalshi has repeatedly argued before a federal court that the status of the CFTC as the federal authority replaces the state supervisory authorities.
Massachusetts, in the letter from the state at the Suffolk County Superior Court, claims that Kalshi earns more money for sports betting than legal, licensed sports books.
“Between February 25, 2025 and May 17, 2025, the sporting events made up around 70% of Kalshi’s trade volume, which from March 18, 2025 on 75% Stieg-Calshi’s first day, on which a game March Madness markets are offered,” says the lawsuit. “Kalshi did more of sports betting than licensed sports betting platforms Draftkings or Fanduel In the course of the same February to May Timeframe. “
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A screenshot of the Kalshi platform in a lawsuit by the state of Massachusett against the predictive platform.
In response to the lawsuit, a Kalshi spokesman said: “Massachusetts tries to block Kalshi’s innovations by based on outdated laws and ideas.” The company said it was “ready to defend [its technology] Once again in a dish. “
A Kalshi spokesman announced CNBC that so far 439 million dollars WAGER had been made in NFL contracts.
The company has managed a national defense of sports forecast market markets. The company demonstrated oral arguments in an appointment by the state of New Jersey before the Court of Appeals of the 3rd Court, which was prevented from enforcing and deviating an interruption against Kalshi.
