{"id":21104,"date":"2026-07-01T05:37:24","date_gmt":"2026-07-01T05:37:24","guid":{"rendered":"https:\/\/cryptoted.net\/index.php\/2026\/07\/01\/kalshi-faces-new-massachusetts-claims-over-sports-contracts\/"},"modified":"2026-07-01T05:37:24","modified_gmt":"2026-07-01T05:37:24","slug":"kalshi-faces-new-massachusetts-claims-over-sports-contracts","status":"publish","type":"post","link":"https:\/\/cryptoted.net\/index.php\/2026\/07\/01\/kalshi-faces-new-massachusetts-claims-over-sports-contracts\/","title":{"rendered":"Kalshi faces new Massachusetts claims over sports contracts"},"content":{"rendered":"<p> <br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/media.crypto.news\/2026\/05\/IMG_6575.webp\" \/><\/p>\n<div>\n<p class=\"is-style-lead\">Massachusetts can add new claims against Kalshi as the state challenges the platform\u2019s sports event contracts.<\/p>\n<div id=\"cn-block-summary-block_4aed652dc4d7042d99cd0970f3f0ff60\" class=\"cn-block-summary\">\n<p>\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/p>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Massachusetts says Kalshi\u2019s sports contracts need gaming oversight because users can trade from age 18.<\/li>\n<li>The amended complaint adds youth marketing claims, including campus campaigns and ads featuring younger-looking people.<\/li>\n<li>Kalshi\u2019s case sits inside a larger fight over state betting laws and federal CFTC authority.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>A Suffolk County Superior Court judge allowed Massachusetts authorities to file a 71-page amended complaint against Kalshi. Associate Justice Peter Krupp granted the request on Tuesday, letting the state add claims to its case over alleged unlawful sports wagering.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>The amended complaint says Kalshi targets users under 21 and does not do enough to stop them from using the platform. The filing cites marketing on university campuses and ads showing people who appear younger than 21.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cKalshi allows anyone who is at least 18 years old to create an account and wager on sports events by purchasing event contracts,\u201d Massachusetts authorities alleged.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>State says Kalshi needs a license<\/strong><\/h2>\n<p>Massachusetts Attorney General Andrea Joy Campbell first sued Kalshi in September 2025, accusing the company of accepting online sports wagers without following state gaming laws. The <a href=\"https:\/\/www.mass.gov\/news\/ag-campbell-sues-online-prediction-market-for-illegal-and-unsafe-sports-wagering-operations\" target=\"_blank\" rel=\"nofollow\">Massachusetts AG\u2019s office<\/a> said Kalshi needed a license from the Massachusetts Gaming Commission before offering sports-related products to residents.<\/p>\n<p>A judge later granted a preliminary injunction that blocked Kalshi from offering sports event contracts in Massachusetts while the case moved forward. The <a href=\"https:\/\/www.mass.gov\/news\/ag-campbell-secures-court-order-that-will-block-kalshi-from-offering-unlawful-sports-wagers-in-massachusetts\" target=\"_blank\" rel=\"nofollow\">AG\u2019s office<\/a> said the order barred Kalshi from accepting online sports wagers and related event contracts from Massachusetts customers unless it complied with state sports gaming laws.<\/p>\n<p>Kalshi has argued that its products fall under federal derivatives law, not state betting rules. The company says it operates as a CFTC-regulated exchange and offers event contracts rather than traditional sportsbook wagers. Massachusetts authorities reject that view and argue that sports outcome contracts still function as sports betting under state law.<\/p>\n<h2 class=\"wp-block-heading\"><strong>CFTC backs federal oversight<\/strong><\/h2>\n<p>The U.S. Commodity Futures Trading Commission has supported Kalshi\u2019s federal-law argument in court. The agency <a href=\"https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/9219-26\" target=\"_blank\" rel=\"nofollow\">said<\/a> it has exclusive authority over prediction markets and that event contracts qualify as swaps under the Commodity Exchange Act.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cCongress has entrusted the CFTC with the sole authority to regulate commodity derivatives markets, including prediction markets,\u201d CFTC Chair Michael Selig said. \u201cTo any state that seeks to nullify federal law and seize authority over these markets, I say again: we will see you in court.\u201d<\/p>\n<\/blockquote>\n<p>The Massachusetts case is part of a broader legal fight involving prediction market platforms and state gaming authorities. A Michigan judge <a href=\"https:\/\/crypto.news\/kalshi-hit-with-temporary-michigan-ban-over-sports-event-contracts\/\" target=\"_blank\">recently blocked Kalshi<\/a> from allowing residents to place sports bets after state officials accused the company of violating gaming laws. Similar disputes have also reached other jurisdictions.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-x wp-block-embed-x\"\/>\n<h2 class=\"wp-block-heading\"><strong>Congress faces pressure on prediction markets<\/strong><\/h2>\n<p>As previously reported by crypto.news, U.S. gaming groups have <a href=\"https:\/\/crypto.news\/u-s-gaming-industry-pushes-lawmakers-to-curb-sports-prediction-markets\/\" target=\"_blank\">urged<\/a> lawmakers to block sports and casino-style prediction markets from CFTC oversight through the CLARITY Act. The groups said platforms offering sports event contracts bypass state and tribal gaming laws by presenting the products as financial contracts.<\/p>\n<p>As <a href=\"https:\/\/crypto.news\/kalshi-courts-investors-at-40b-valuation-amid-lawsuits\/\" target=\"_blank\">reported<\/a> earlier by crypto.news, sports-related contracts remain Kalshi\u2019s largest product category, accounting for about 65% of total volume, according to company data. That growth has drawn more attention from courts, lawmakers and regulators as the company expands beyond its original event-market model.<\/p>\n<p>Previously, crypto.news reported that the <a href=\"https:\/\/crypto.news\/cftc-plans-new-prediction-market-rules-that-could-affect-polymarket-and-kalshi\/\" target=\"_blank\">CFTC was preparing a new framework<\/a> for reviewing prediction market contracts. The plan could bring closer review to sports, political and other real-world event contracts. For Kalshi, the Massachusetts amended complaint adds another state-level case to a national dispute over who controls sports prediction markets.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/crypto.news\/kalshi-faces-new-massachusetts-claims-over-sports-contracts\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Massachusetts can add new claims against Kalshi as the state challenges the platform\u2019s sports event contracts. Summary Massachusetts says Kalshi\u2019s sports contracts need gaming oversight because users can trade from age 18. The amended complaint adds youth marketing claims, including campus campaigns and ads featuring younger-looking people. Kalshi\u2019s case sits inside a larger fight over [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":19811,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[23],"tags":[],"kronos_expire_date":[],"class_list":["post-21104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"_links":{"self":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/21104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/comments?post=21104"}],"version-history":[{"count":0,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/21104\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media\/19811"}],"wp:attachment":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media?parent=21104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/categories?post=21104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/tags?post=21104"},{"taxonomy":"kronos_expire_date","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/kronos_expire_date?post=21104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}