cointelegraph.com
13 September 2025 02:07, UTC
Prediction market platform Kalshi has vowed to fight a new lawsuit from the US state of Massachusetts, which accuses the company of offering unlicensed sports betting to residents.
“We are proud to be the company that has pioneered this technology and stand ready to defend it once again in a court of law,” a spokesperson for Kalshi told Cointelegraph on Friday.
“Prediction markets are a critical innovation of the 21st century, and all Americans should be able to access them,” Kalshi added.
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The civil lawsuit, filed on Friday by the Commonwealth of Massachusetts in Suffolk County Superior Court, alleged that Kalshi disguises sports wagering as “event contracts” and violates the state’s strict gambling laws.
“Kalshi is violating the Commonwealth’s strict sports wagering laws and regulations by offering unlicensed sports wagering to Massachusetts residents,” the filing stated.
It further claimed that as of May 2025, more than three-quarters of Kalshi’s trading volume comes from sports — a larger share, the filing said, than industry giants DraftKings or FanDuel.
However, the Kalshi spokesperson said that Massachusetts’s regulators chose legal action over directly resolving the matter:
“Rather than engage in dialogue with Kalshi as many other states have done, Massachusetts is trying to block Kalshi’s innovations by relying on outdated laws and ideas.”
Kalshi has previously argued that the Commodity Futures Trading Commission (CFTC) regulates it at the federal level and does not fall under state gambling jurisdiction.
It has received cease-and-desist orders from other states, including Arizona, Montana, Ohio, and Illinois.
The case comes as blockchain-powered prediction market Polymarket is reportedly preparing to launch in the US.
Citing sources familiar with the conversation, Business Insider reported on Friday that Polymarket is exploring re-entering the US while seeking new funding that could more than triple its June valuation of $1 billion. One investor valued the company at up to $10 billion.
