The prediction market platform Kalshi vows to fight a new lawsuit from the state of Massachusetts, which accuses the company of providing unlicensed sports betting services to residents.
Kalshi spokesperson stated to Cointelegraph on Friday, "We are proud to be the company that pioneered this technology and are ready to defend it in court once again."
Kalshi added, "Prediction markets are a key innovation of the 21st century, and all Americans should have access to them."
The civil lawsuit was filed by the federal government of Massachusetts on Friday in Suffolk County Superior Court, accusing Kalshi of disguising sports betting as "event contracts," in violation of the state's strict gambling laws.
The complaint states, "Kalshi has violated federal strict sports betting laws by providing unlicensed sports betting to residents of Massachusetts."
The complaint further claims that as of May 2025, more than three-quarters of Kalshi's trading volume comes from sports events—this proportion is said to be higher than industry giants DraftKings or FanDuel.
However, a Kalshi spokesperson stated that Massachusetts regulators chose legal action instead of addressing the issue directly:
Kalshi previously argued that the Commodity Futures Trading Commission (CFTC) regulates it at the federal level, and it does not fall under state gambling jurisdiction.
The company has received cease-and-desist orders from other states, including Arizona, Montana, Ohio, and Illinois.
This case comes at a time when the blockchain-driven prediction market Polymarket is reportedly preparing to launch in the U.S.
Business Insider reported on Friday, citing sources familiar with the discussions, that Polymarket is exploring re-entering the U.S. market while seeking new funding, which could more than double its valuation of $1 billion from June. One investor has valued the company at as much as $10 billion.
This follows Polymarket CEO Shayne Coplan's post on the X platform on September 4, stating, "Polymarket has received the CFTC green light to launch in the U.S." just days earlier.
He added, "Stay tuned."
Related: Cryptocurrency exchange Bitstamp's trading volume surpassed Robinhood in August
Original article: “Kalshi to ‘Defend Prediction Markets’ in Massachusetts Lawsuit”
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