The Kalshi logo organized a laptop in New York, USA, on Monday, February 10, 2025.
Gabby Jones | Bloomberg | Getty images
Massachusetts filed a lawsuit in the state court on Friday against Kalshi, claiming that the prediction platform offers sports games without a license under the appearance of event contracts.
“If Kalsi wants to be in the sports game business in Massachusetts, they must obtain a license and follow our laws,” said Massachusetts Attorney, Andrea Joy Campbell, in a press release.
The State is also asking the court to prevent Kalshi from offering sports events contracts in Massachusetts, while the lawsuit is pending.
On Monday, Robinhood demanded the state of Massachusetts in advance that it could be the next one in the repression of the State against prediction markets. Robinhood offers event contracts to its clients and sports offices through the Kalshi platform and argued: “The Judicial demand and order of Massachusetts could cause damage to reputation and potentially criminal or civil sanctions.”
Event contracts are regulated as a prediction market for the Basic Products Future Trade Commission. Kalshi has repeatedly argued in a federal court that the state of the CFTC as a federal agency replaces state regulators.
In the state summary presented to the Superior Court of the County of Suffolk, Massachusetts argues that Kalshi is earning more money in sports bets than licensed legal betting houses.
“Sports events bets included approximately 70% of Kalshi's negotiation volume between February 25, 2025 and May 17, 2025, which increased to 75% since March 18, 2025 onwards, the first day of Kalshi offers madness markets in March of a single game,” says the demand. “Kalshi made more of sports bets than license sports betting platforms Drug addicts either Fanduel During the same period from February to May. “
A screenshot of the Kalshi platform included in a demand from the Massachusetts state against the prediction platform.
In response to demand, a Kalshi spokesman said: “Massachusetts is trying to block Kalshi's innovations, trusting obsolete laws and ideas.” The company said it is “ready to defend [its technology] Once again in a court of justice. “
A Kalshi spokesman told CNBC that to date $ 439 million had been placed in bets in NFL contracts.
The company has been leading a national defense of sports prediction trades. The company made oral arguments before the 3rd Circuit Court of Appeals in an appeal of the New Jersey State, which prevented itself from enforcing a cessation and withdrawing against Kalshi.
