Massachusetts Challenges Kalshi's Sports Betting Operations

Massachusetts' attorney general seeks to prevent Kalshi from operating an unlicensed sports betting platform in the state. Attorney General Andrea Joy Campbell has taken legal action to block Kalshi, arguing it violates state law by offering sports wagering without a license. Kalshi contends federal regulations apply.

Massachusetts' attorney general is making a significant legal move against Kalshi, a prediction-market operator. On Tuesday, a state court judge will be asked to stop the company from allowing residents to place bets on sports through its online platform, claiming it's an unlicensed gambling operation.

This marks the first time a U.S. state has sought a court order against Kalshi for its sports betting practices. The New York-based company has already received cease-and-desist letters from at least nine other states, but Massachusetts leads by launching a formal enforcement action.

Attorney General Andrea Joy Campbell argues that the platform violates state gambling laws by offering sports betting without the necessary licenses. However, Kalshi disputes the claims, citing federal regulation by the CFTC instead. Legal challenges are underway in other states, with mixed rulings complicating the issue.

(With inputs from agencies.)