Kalshi, a sports prediction market operator, will not be allowed to operate in the Bay State if Massachusetts Attorney General Andrea Joy Campbell gets her way.

Campbell claims Kalshi is operating an unlicensed gambling business and is requesting a state court judge to prevent the company from allowing Massachusetts people to utilize its platform. 

For the first time, a US state is attempting to use a court order to prohibit betting on a prediction website. Regulators have filed complaints against Kalshi in several jurisdictions, claiming that the prediction market company violates state rules by providing event contracts that resemble sports bets.

Unauthorized Gambling Business

Prediction market firms like Kalshi and Polymarket contend that because they are subject to federal regulation by the Commodities Futures Trading Commission (CFTC), they are not subject to state law jurisdiction. Prediction contracts, where users wager on the results of particular events, are available on platforms such as Kalshi.

The gambling on these sites is dominated by sporting events and entertainment events, such as the current event contract that asks users to predict the winner of the college football championship. Another inquires as to who will win the next US presidential election and whether President Trump will make any of the Epstein documents public.

The NHL announced a collaboration agreement with Kalshi and Polymarket in October, making it the first major professional sports league to do so.

State legal objections are being advanced by the Massachusetts Attorney General's enforcement action. Campbell is specifically requesting an injunction from the court to halt Kalshi's activities in Massachusetts.

Kalshi: The CFTC regulates us.

According to Campbell, Kalshi is offering sports betting under the pretext of event contracts. In Massachusetts, sports betting is completely legal and licensed.

Operators of state-licensed sports betting and internet casinos are prohibited from providing their services to those under the age of 21. Campbell contends that individuals under that age are the target market for Kalsi's betting product.