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Massachusetts AG Calls Kalshi’s Bluff in Illegal Sports Betting Suit

  • Massachusetts AG Andrea Joy Campbell has sued KalshiEX LLC (Kalshi), an online prediction market, for allegedly violating state gambling laws.
  • The complaint accuses Kalshi of unlawfully offering sports wagering to Massachusetts residents without obtaining the required state licenses. While Kalshi markets its offerings as “event contracts” traded on a “prediction market,” the AG’s office argues that the company’s products function like traditional sports betting platforms and are, therefore, subject to the same licensing requirements.
  • According to the lawsuit, Kalshi’s unlicensed operations expose residents to a range of harms, including the public health risks associated with compulsive gambling and significant financial losses.
  • The lawsuit seeks injunctive relief, damages, civil penalties, and attorneys’ fees and costs, among other forms of relief.