Press Release  AG Campbell Sues Online Prediction Market for Illegal and Unsafe Sports Wagering Operations

BOSTON — Massachusetts Attorney General Andrea Joy Campbell today filed a lawsuit in Suffolk Superior Court against KalshiEX LLC (“Kalshi”) -- a self-described online “prediction market” -- for promoting and accepting online sports wagers from Massachusetts customers without following the many Massachusetts laws that govern sports gaming, including licensure by the Massachusetts Gaming Commission (MGC).  

“Sports wagering comes with significant risk of addiction and financial loss and must be strictly regulated to mitigate public health consequences,” said AG Campbell. “This lawsuit will ensure that if Kalsi wants to be in the sports gaming business in Massachusetts, they must obtain a license and follow our laws. I am grateful for the ongoing partnership with the Gaming Commission.” 

“Prediction market companies are expanding into sports wagering while neglecting age restrictions, player protection programs, state taxes, and other consumer protections. My fellow commissioners and I appreciate the Attorney General’s efforts to enforce the law and hold these companies accountable to Massachusetts’ rigorous standards,” said Massachusetts Gaming Commission Chair Jordan Maynard. “We look forward to our continued partnership with Attorney General Campbell and her office.” 

The Attorney General’s Office (AGO) alleges that Kalshi uses an online “exchange” to offer sports wagering, under the guise of “event contracts,” which allow bettors to place wagers through a “yes” or “no” option on the likelihood of whether an event will occur. Kalshi’s platform offers “event contracts” on sporting events, including moneyline contracts, point spread contracts, and over-under contracts. These “event contracts” closely resemble sports wagers offered by licensed operators. The platform actively promotes its sports wagering offerings on television and social media and allows “trading” through retail trading platforms like Robinhood. According to the AGO, Kalshi has neither applied for nor received a Massachusetts sports wagering license from the MGC, as required by law.  

The AGO further alleges that Kalshi’s unlawful sports wagering operation bypasses key consumer protections that are required of licensed sports wagering operators. Kalshi has failed to undergo comprehensive processes required by the MGC to ensure that its operations are in alignment with regulations. Kalshi allows users between the ages of 18-21 to bet on its platform, when the legal age for sports wagering online in Massachusetts is 21. Kalshi also provides few safeguards to educate users about financial responsibility or the risks of sports wagering, and its responsible gambling tools fall far short of what licensed operators are legally obligated to provide. For instance, Kalshi consistently fails to provide compliant self-limiting options to Massachusetts bettors, such as appropriate maximum deposits or maximum wagers.

As part of today’s filing, the AGO is requesting that the court order Kalshi to cease offering sports wagering in Massachusetts while the lawsuit is pending. 

This matter is AG Campbell’s latest effort to combat the public health harms associated with sports betting and gambling, especially among young people. In June 2025, AG Campbell issued cease-and-desist letters to two online gaming operators for offering online gambling and betting products without obtaining a license. In March of 2024, AG Campbell announced the formation of the Youth Sports Betting Safety Coalition, a private-public partnership to raise awareness about the laws and risks surrounding youth online sports gambling.  

This matter was handled by Division Chief Jared Rinehimer of the AGO’s Privacy and Responsible Technology Division, Assistant Attorneys General Louisa Castrucci and Joshua Edlin and Paralegal Payton Doan of the AGO’s Gaming Enforcement Division, Investigator Melissa Casella of the AGO’s Civil Investigation Division, Assistant Attorney General Alda Chan of the AGO’s Consumer Protection Division, and First Assistant Attorney General Pat Moore, with the assistance of Assistant Attorney General Madonna Cournoyer of the AGO’s Insurance and Financial Services Division. 

If you or a loved one is experiencing problems with gambling, and needs support, there are resources available. Please call 1-800-327-5050, text “GAMB” to 800327, or visit https://gamblinghelplinema.org to speak with a trained specialist. The helpline is free, confidential and available in multiple languages. Additional resources for the prevention of problem gambling are available at Problem Gambling - Massachusetts Gaming Commission.   

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