Kalshi Legal Battle Against Massachusetts to Continue Over Sports Betting Allegations

Prediction markets platform Kalshi’s legal battle against Massachusetts will continue after a judge ruled that state authorities could add allegations against the company over sports betting.

In a Tuesday filing in Suffolk County Superior Court, associate justice Peter Krupp allowed state authorities to file a 71-page amended complaint, building on a filing alleging that Kalshi engaged in sports wagering in violation of state laws.

The amended complaint included allegations that Kalshi “targets those under 21 years of age and does little to stop them from using its platform,” citing the company’s marketing to university campuses and presenting images in ads of people who “appear to be younger than 21 years old.”

“Kalshi allows anyone who is at least 18 years old to create an account and wager on sports events by purchasing event contracts,” alleged Massachusetts authorities.

Source: Massachusetts Superior Court

Massachusetts Attorney General Andrea Joy Campbell announced the lawsuit against Kalshi in September 2025, alleging that the company needed to be licensed by the Massachusetts Gaming Commission to comply with state laws on online sports wagers. In January, a judge granted a preliminary injunction barring Kalshi from offering sports event contracts as the case was under review.

Related: US senators push to end CFTC ‘assault’ on state oversight of prediction markets

The Massachusetts case is just one of many involving state-level authorities and prediction markets companies like Kalshi and Polymarket, who offer users the ability to trade using event contracts on a variety of outcomes related to sports, politics and current events.

While Kalshi has been blocked from offering sports bets in some jurisdictions, it also has support from the US Commodity Futures Trading Commission (CFTC), which in April filed a brief in Massachusetts arguing the agency had “exclusive jurisdiction” over prediction markets. The CFTC, under Chair Michael Selig, has claimed that event contracts on the platforms amount to “swaps” covered by the Commodity Exchange Act and were not subject to state regulation.

“Congress has entrusted the CFTC with the sole authority to regulate commodity derivatives markets, including prediction markets,” said Selig. “To any state that seeks to nullify federal law and seize authority over these markets, I say again: we will see you in court.”

Cointelegraph reached out to Kalshi for comment but did not receive an immediate response. Following the initial complaint in September, a spokesperson said that the company was “ready to defend” itself in court.

Gaming organizations look to CLARITY Act for clarity on prediction markets

While one of the cases between a prediction markets platform and US state authority could ultimately reach the US Supreme Court given the arguments over federal and state laws, some groups are looking to Congress for solutions.

Earlier this month, national gaming and tribal organizations and labor groups called on US senators to add language “that explicitly prohibits event contracts tied to sports and casino-style gaming” to the Digital Asset Market Clarity (CLARITY) Act. The bill, under consideration in the Senate, is expected to give the CFTC more regulatory authority over digital assets.