The Attorney General of Massachusetts has initiated a lawsuit against KalshiEX LLC — a betting platform valued at $2 billion. The main allegation is that Kalshi provides sports betting services without the necessary license from the Massachusetts Gaming Commission (MGC), thereby violating state laws.
This is reported by Finway
Legal Violations and Platform Operations
In the lawsuit, the Attorney General emphasizes that over 75% of the trading volume on Kalshi consists of contracts that are essentially sports bets. These involve operations related to predicting the winner of a match, point differentials, totals, and other outcomes of sporting events. Such formats are explicitly defined by law as sports betting, which requires a separate license.
In addition to lacking a license, Kalshi allows users to start gambling at the age of 18, while the minimum age for gambling in Massachusetts is 21. The platform also does not impose limits on deposit or bet sizes and does not offer a self-exclusion program for players.
Signs of an Online Casino and Prosecutor’s Demands
The lawsuit notes that Kalshi resembles an online casino in its functionality. In particular, prosecutors point to the highlighting of winnings in green, the presence of player social rankings, and other gaming elements.
Ultimately, the plaintiff emphasizes that Kalshi is engaged in “illegal gambling,” utilizes elements of gambling, and violates state legislation.
The prosecution refers to case law indicating that games featuring elements of contribution, winnings, and randomness are considered illegal without special permission. Therefore, they demand that the court recognize the activities of KalshiEX LLC as illegal, prohibit the company’s operations in Massachusetts without the appropriate license, and impose fines and compensation, the amount of which will be determined by the court.
It is worth noting that in May 2025, the U.S. Commodity Futures Trading Commission ceased further legal action against Kalshi; however, the question of the platform’s legality in Massachusetts remains unresolved.