Mass. AG Expands Suit Against Kalshi Over Sports Betting
A judge allowed prosecutors to file a 71‑page amended complaint accusing Kalshi of offering unlicensed sports wagers and targeting users under 21.
A Massachusetts judge on Tuesday allowed prosecutors to file a 71‑page amended complaint accusing prediction‑markets firm Kalshi of offering unlawful sports wagers and targeting users younger than 21.
Associate Justice Peter Krupp of Suffolk County Superior Court approved the filing, which expands allegations that Kalshi offered sports wagering without a license from the Massachusetts Gaming Commission. The amended complaint says Kalshi enables anyone 18 or older to create an account and buy event contracts tied to sports outcomes.
The complaint also alleges marketing practices aimed at college campuses and advertising that depicts people who appear to be under 21, and contends the company has insufficient age controls to prevent underage use.
Massachusetts Attorney General Andrea Joy Campbell announced the original lawsuit in September 2025, saying Kalshi needed state licensing to offer online sports wagers. In January a judge issued a preliminary injunction barring Kalshi from offering sports event contracts in Massachusetts while the litigation proceeds.
The case is part of broader litigation over how prediction markets are regulated. The Commodity Futures Trading Commission filed a brief asserting federal authority, arguing that event contracts on platforms like Kalshi are covered by the Commodity Exchange Act and fall under the CFTC’s exclusive jurisdiction. CFTC Chair Michael Selig wrote that Congress entrusted the agency with oversight of commodity derivatives markets and added, “we will see you in court.”
The amended complaint focuses on licensing and consumer protection claims. Prosecutors say Kalshi offered sports contracts without a state license and that its marketing and age policies create a risk of attracting underage participants.
Industry groups, including gaming and tribal organizations, have urged Congress to clarify federal law. Several petitioned senators to add language to the Digital Asset Market Clarity Act that would prohibit event contracts tied to sports and casino‑style gaming.
Kalshi previously said it was prepared to defend itself in court. After the amended complaint was filed, the company did not immediately respond to requests for comment.
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