Massachusetts has initiated legal action in state court against Kalshi, alleging that the platform is offering sports betting activities without securing proper licensing by presenting them as events contracts. The complaint, submitted to the Suffolk County Superior Court, asserts that Kalshi earns a higher income from sports wagers than competitors that operate under official sports betting licenses.
According to the state’s submission, events contracts fall under the regulatory scope of the Commodity Futures Trading Commission. Kalshi, on its part, maintains that the federal regulatory body’s authority takes precedence over local state oversight. This disagreement over jurisdiction marks a significant point of contention in the current legal dispute.
Massachusetts Attorney General Andrea Joy Campbell stated in a news release that any firm wishing to offer sports betting in the state must obtain the appropriate authorization and adhere to the established legal framework. In her remarks, she emphasized that the current operation of sports betting under an alternative guise is not acceptable. The state has also requested that the court temporarily suspend Kalshi’s ability to extend these contracts within Massachusetts while the litigation is underway.
In a related development, Robinhood has also filed legal action against the state. The brokerage, which facilitates events contracts for its users through the Kalshi platform, expressed concerns that coming under the strict regulatory measures could inflict harm on its reputation and expose it to potential criminal or civil liabilities. Robinhood’s suit signals that the state’s efforts to impose stricter control over this form of trading may affect several market participants.
The legal documentation highlights that sports wagers comprised roughly 70 percent of Kalshi’s trading volume between February 25 and May 17, 2025. This figure then increased to 75 percent beginning on March 18, 2025, coinciding with the commencement of single-game markets during March Madness. The complaint contends that, in that same period, Kalshi generated more revenue from sports betting than well-known licensed providers such as DraftKings or FanDuel.
Responding to the suit, a spokesperson for Kalshi criticized the state’s stance, arguing that regulators are applying outdated legal concepts to curtail modern trading practices. The representative affirmed that the company stands ready to defend its methods in court. Additionally, the firm noted that bets on NFL contracts have amounted to $439 million to date.
Kalshi has been actively involved in legal defenses on a nationwide scale regarding sports predictions. In a previous challenge before the 3rd Circuit Court of Appeals in New Jersey, an attempt by state officials to enforce a cease and desist order was unsuccessful. The current case thus represents another chapter in the ongoing debate over regulatory authority in the emerging field of sports betting and predictions markets.