Massachusetts Attorney General Andrea Joy Campbell has filed a legal motion to stop prediction-market operator Kalshi from operating within the state, arguing that the company is essentially running an unlicensed gambling operation.
This legal action marks the first time a US state has sought a court order to prevent wagering on a prediction platform, escalating the conflict between state regulators and federal oversight arguments.
Campbell is petitioning a state court judge for an injunction to shut down Kalshi’s platform for Massachusetts residents. The core of the Attorney General’s argument is that Kalshi offers event contracts that are functionally identical to sports bets, which are heavily regulated in the state.
While licensed sports betting operators in Massachusetts are strictly prohibited from offering their services to individuals under the age of 21, Campbell alleges that Kalshi’s platform is accessible to those under that legal gambling age.
Kalshi, along with similar platforms like Polymarket, maintains that it does not fall under state gambling jurisdiction because it is regulated at the federal level by the Commodity Futures Trading Commission (CFTC).
These platforms offer contracts allowing users to wager on specific outcomes, ranging from political elections to entertainment events.
Notably, wagering on sporting events has become dominant on these sites, with active markets predicting outcomes such as the college football championship winner.
The lawsuit comes amidst a broader push by Kalshi to integrate into the sports world, having recently secured a partnership with the NHL.
However, Campbell contends that these “event contracts” are merely sports betting disguised to evade state licensing and consumer protection laws.
If successful, the injunction would effectively block Kalshi from “hanging a shingle” and conducting business in the Bay State, setting a significant precedent for how prediction markets interact with state gambling laws across the country.
João Studart, Executive Chairman of Flutter Brazil:
This is the natural next step in our governance structure. Duda knows the operation deeply and has been essential in shaping our ecosystem. The transition reinforces our maturity and ensures we will continue to grow responsibly.
Eduardo “Duda” Monte, CEO of Flutter Brazil:
We are at a decisive moment for the Brazilian digital entertainment market. Our priority is to strengthen cultural relevance, compliance, and the sustainability of our ecosystem. João remains a strategic leader guiding key decisions and helping align Brazil with the group’s long-term vision.
