The states that have objected to sports prediction contracts offered by Kalshi and one of its partners, Robinhood, now include Massachusetts.
Even though Kalshi’s offering of contracts for sporting events has been the subject of numerous lawsuits in different states, no forum may be more contentious than Massachusetts, where the state’s attorney general has taken the initiative to file its own lawsuit, claiming the company violates state law by using its prediction marketplace to offer unlicensed sports wagering. According to the grievance:
“The Commonwealth claims that Kalshi, one of the biggest prediction markets in the nation with a valuation of over $2 billion, is providing sports betting to Massachusetts citizens under the pretence of “event contracts” without the necessary Massachusetts Gaming Commission license. The aforementioned illegal activity exposes Commonwealth citizens to numerous negative consequences, including as the public health hazards of compulsive gambling, a behavioural addiction that has been clinically identified, and catastrophic financial losses. The Commonwealth is seeking injunctive relief, damages, civil monetary penalties, attorneys’ fees and expenses, and any other remedy the Court thinks appropriate for these statutory offences.
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The state’s position on the issues raised by Kalshi’s platform, specifically its purported lack of protections necessary to create and enforce responsible consumer behaviour, is further echoed in the press statement published by the AG’s office.
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