Kalshi faces Massachusetts lawsuit over alleged unlicensed sports betting

Predictive market platform Kalshi faces new lawsuits in Massachusetts alleging it offers unlicensed sports betting to residents, Cointelegraph reported. Kalshi said it would defend its technological innovations, believing that the forecast market is an important innovation in the 21st century. A civil lawsuit filed by Massachusetts in the Siouxford County Superior Court alleges Kalshi disguised sports betting as a “event contract”, violating the state’s strict gambling laws. The lawsuit noted that as of May 2025, more than three-quarters of Kalshi's trading volume came from sports betting. A Kalshi spokesman said Massachusetts chose legal action over dialogue, which hindered its innovation. Kalshi believes it is subject to federal regulation by the CFTC and does not fall under the jurisdiction of state gambling. Previously, Kalshi had received bans from Arizona, Montana, Ohio and Illinois. Meanwhile, blockchain forecasting market Polymarket is preparing to launch in the U.S. and seeking new financing that could raise its valuation to $10 billion.