Massachusetts AG Sues Kalshi for Illegal Sports Wagering

Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit in Suffolk Superior Court against prediction market platform KalshiEX LLC.

The suit accuses Kalshi of facilitating illegal and unsafe sports wagering in the state. Kalshi has operated without a license from the Massachusetts Gaming Commission (MGC), which violates state regulations designed to protect consumers.

“Sports wagering comes with significant risk of addiction and financial loss and must be strictly regulated,” said AG Campbell. “This lawsuit ensures Kalshi cannot bypass Massachusetts laws.”

Kalshi allows users to trade on the outcomes of sports events through binary “yes” or “no” contracts. The Attorney General’s Office (AGO) contends that these “event contracts” closely resemble traditional sports wagers and are actively marketed on social media and television, including through retail trading platforms like Robinhood.

According to the complaint, Kalshi targets users below the legal wagering age of 21, lacks sufficient responsible gambling standards, and doesn’t follow the deposit and wagering limits required by Massachusetts sports betting law. AG Campbell is asking the court to block Kalshi from offering sports wagering services in Massachusetts during the ongoing litigation.

The MGC supported the move. “Prediction market companies are expanding into sports wagering while neglecting key consumer protections,” said MGC Chair Jordan Maynard.

Cease-and-desist letters were sent to other unlicensed gaming platforms in June 2025, following the earlier action by AG Campbell’s office. The lawsuit aims to address youth exposure to online gambling, referring to the 2024 launch of the Youth Sports Betting Safety Coalition. Residents are encouraged to use legal Massachusetts sports betting apps.

The case is being led by attorneys and investigators across multiple divisions of the AGO, with collaboration from the Gaming Enforcement Division and the Consumer Protection Division.

Massachusetts iGaming bill proposes sweepstakes crackdown

As Massachusetts cracks down on unlicensed online betting platforms, lawmakers are considering House Bill 4431, which would legalize online casino gaming in 2026 while outlawing unregulated sweepstakes casino-style platforms. 

Sponsored by Rep. David Muradian, the bill grants licenses exclusively to the state’s three existing casinos, including Encore Boston Harbor, MGM Springfield, and Plainridge Park, each of which is allowed up to three online “skins.” Licenses would cost $100,000 with a 15% tax on gross revenue.

The bill mandates consumer protections, such as players being 21+, credit cards being banned, daily deposit caps set at $20,000, and AI tools must monitor gambling risk. Simultaneously, the bill proposes harsh penalties for sweepstakes operators of up to $100,000 per violation and criminal charges for facilitating such platforms.

Supporters argue that real-money online casinos could generate hundreds of millions in tax revenue and enhance player protection, echoing successful models in states like Nevada. However, critics, including labor unions, warn that digital gaming would result in job losses as digital gaming competes with land-based casinos.

If the bill passed, Massachusetts would be a part of a growing number of states regulating iGaming while actively restricting gray-market sweepstakes sites.