Kalshi, a prediction market platform, says it’s ready to fight a new lawsuit from Massachusetts. The state claims the company is offering unlicensed sports betting to its residents. It’s a pretty direct challenge, and Kalshi isn’t backing down.
A spokesperson for the company said they’re prepared to defend themselves in court. They called prediction markets an important development for this century. But state officials clearly see it differently.
What Massachusetts is alleging
The civil suit was filed in Suffolk County Superior Court. It argues that Kalshi is basically dressing up sports betting as something else—calling them “event contracts.” According to the filing, this breaks the state’s gambling laws.
Massachusetts says Kalshi is offering unlicensed sports wagering. And they threw in a pretty interesting stat: they claim that as of May 2025, over 75% of Kalshi’s trading volume comes from sports. That’s apparently more than what DraftKings or FanDuel see. If that’s true, it’s a significant detail.
Kalshi’s defense and other legal troubles
But Kalshi’s response was pretty firm. Their spokesperson suggested that Massachusetts didn’t really try to work things out first. They said other states have been willing to talk, but Massachusetts just went straight to a lawsuit, relying on what they call “outdated laws.”
It’s not the first time Kalshi has faced this kind of heat. They’ve gotten cease-and-desist orders from several other states, like Arizona, Montana, Ohio, and Illinois. Their main argument has always been that they’re regulated at the federal level by the CFTC, the Commodity Futures Trading Commission. So they believe state gambling rules shouldn’t apply.
A shifting landscape for prediction markets
This legal fight is happening while another big player, Polymarket, is reportedly making moves to launch in the U.S. According to sources, they’re looking for new funding and could be valued much higher than before. Some are even throwing around a figure as high as $10 billion.
It feels like the whole space is at a turning point. Regulators are trying to figure out how to handle these platforms. Are they gambling? Or are they something else entirely? The answer isn’t very clear right now. And honestly, the laws might just be playing catch-up.
For now, Kalshi seems dug in. They think they’re on the right side of this. But courts will have the final say. It’s a case worth watching, especially as these markets get more popular.
