Massachusetts State Attorney General Alleges Kalshi Violating Sports Gambling Laws

News Back to menu News Markets Finance Tech Policy Focus Prices Back to menu Prices Data Back to menu Data Trade Data Derivatives Order Book Data On-Chain Data API Research & Insights Data Catalogue AI & Machine Learning Indices Back to menu Indices Multi-Asset Indices Reference Rates Strategies and Services API Insights & Announcements Documentation & Governance Research Back to menu Research Events Back to menu Events CoinDesk: Policy & Regulation Consensus Hong Kong Consensus Miami Sponsored Back to menu Sponsored Thought Leadership Press Releases CoinW MEXC Phemex Advertise Stellar Videos Back to menu Videos CoinDesk Daily Shorts Editor's Picks Podcasts Back to menu Podcasts CoinDesk Podcast Network Markets Daily Gen C Unchained with Laura Shin The Mining Pod Newsletters Back to menu Newsletters CoinDesk Headlines Crypto Daybook Americas State of Crypto Crypto Long & Short Crypto for Advisors Webinars Back to menu Webinars English Select Language English en Italiano it Português pt-br Français fr 中文 zh Українська uk Filipino fil Español es Русский ru Deutsch de Nederlands nl 한국어 ko Search / News Prices Data Indices Research Events Sponsored Search / Sign In Sign Up BTC $ 116,057.47 1.35 % ETH $ 4,661.29 5.24 % XRP $ 3.1023 2.93 % USDT $ 1.0005 0.04 % SOL $ 240.25 5.84 % BNB $ 924.49 3.11 % USDC $ 0.9997 0.01 % DOGE $ 0.2714 7.36 % TRX $ 0.3510 1.67 % ADA $ 0.9054 2.40 % LINK $ 25.02 3.57 % HYPE $ 55.89 1.90 % USDE $ 1.0013 0.05 % SUI $ 3.6832 1.21 % XLM $ 0.3999 1.79 % AVAX $ 28.60 0.97 % BCH $ 596.20 1.29 % HBAR $ 0.2439 1.65 % WBT $ 44.07 1.95 % LTC $ 117.53 1.90 % BTC $ 116,057.47 1.35 % ETH $ 4,661.29 5.24 % XRP $ 3.1023 2.93 % USDT $ 1.0005 0.04 % SOL $ 240.25 5.84 % BNB $ 924.49 3.11 % USDC $ 0.9997 0.01 % DOGE $ 0.2714 7.36 % TRX $ 0.3510 1.67 % ADA $ 0.9054 2.40 % LINK $ 25.02 3.57 % HYPE $ 55.89 1.90 % USDE $ 1.0013 0.05 % SUI $ 3.6832 1.21 % XLM $ 0.3999 1.79 % AVAX $ 28.60 0.97 % BCH $ 596.20 1.29 % HBAR $ 0.2439 1.65 % WBT $ 44.07 1.95 % LTC $ 117.53 1.90 % Ad Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Massachusetts State Attorney General Alleges Kalshi Violating Sports Gambling Laws Kalshi's prediction markets for sports resemble licensed sports wagering products, the lawsuit said. By Nikhilesh De Sep 12, 2025, 8:54 p.m. Kalshi's website (Jesse Hamilton/CoinDesk) Prediction market Kalshi is violating Massachusetts' state gambling laws, its attorney general alleged in a lawsuit Friday. In a filing , Attorney General Andrea Joy Campbell alleged that sports event contracts, which Kalshi introduced in January 2025, violate the state's sports wagering laws, which require operators to be licensed. Campbell is asking for a court to block Kalshi from offering sports prediction markets in the state without a license, as well as monetary and other relief. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Prediction markets have grown in popularity over the past few years, with crypto-focused companies like Polymarket and firms like Kalshi seeing immense interest over questions such as who would win the last presidential election. While the Massachusetts filing notes that Kalshi does offer these different categories of prediction markets, its lone charge is focused on its sports-related bets. The filing said Kalshi's prediction markets, which are structured as binary options, operate the same way licensed sports wagering operators' products do, comparing it to FanDuel as an example. "Kalshi is in the business of accepting wagers, defined as 'a sum of money or thing of value risked on an uncertain occurrence' on amateur and professional sporting events in the form of selling sporting event contracts," the filing said, adding, "Kalshi’s sporting event contracts constitute sports wagering as defined by [Massachusetts General Law Chapter 23, section three] and applicable regulations." A portion of the lawsuit points to actions the Attorney General's office alleges are designed to hook possible bettors. "Kalshi’s platform employs behavioral design mechanisms drawn from gambling psychology, including features that encourage impulsive engagement, exploit award anticipation, and diminish users’ perception of financial risk," the filing said. It pointed to Kalshi's website design, including presenting possible payouts in "bright green font, a color that signals safety and correctness," while odds were presented in black font. "This interface design subtly encourages high-risk transactions by emphasizing reward while obscuring risk." Campbell said "if Klashi wants to be in teh sports gaming business in Massachusetts, they must obtain a license" in a statement. "Sports wagering comes with significant risk of addiction and financial loss and must be strictly regulated to mitigate public health consequences." In a statement, a Kalshi spokesperson said, "Kalshi offers its users a fair, transparent, federally-regulated, and nationwide marketplace. Rather than engage in dialogue with Kalshi as many other states have done, Massachusetts is trying to block Kalshi’s innovations by relying on outdated laws and ideas. Prediction markets are a critical innovation of the 21st century, and all Americans should be able to access them. We are proud to be the company that has pioneered this technology and stand ready to defend it once again in a court of law." Kalshi More For You Hong Kong's Central Bank Plans to Ease Rules on Banks' Crypto Holding: Report By Jamie Crawley | Edited by Parikshit Mishra Sep 11, 2025 The central bank released a draft paper for public comment with a view to clarifying the guidance on capital regulation for crypto assets What to know : The Hong Kong Monetary Authority (HKMA) has circulated plans for easing the capital requirements for banks holding cryptocurrencies, according to a report. The drafted guidelines focus on lowering bank capital requirements if issuers can take appropriate measures to prevent and respond to risks. Read full story Latest Crypto News Polymarket Weighs $9B Valuation Amid User Surge and CFTC Approval: The Information 1 hour ago Bitcoin, Ether Catch Friday Afternoon Bids, Rise to Three-Week Highs 1 hour ago Gemini Stock Jumps 45% in Early Trades After IPO 3 hours ago SOL Rallies as Novogratz Calls Solana ‘Tailor-Made’ for Financial Markets, Analyst Sees $1,314 Target 4 hours ago Tether Unveils USAT Stablecoin for U.S. Market, Names Bo Hines to Lead New Division 5 hours ago Institutional Bets Drive HBAR Higher Amid ETF Hopes 6 hours ago Top Stories Bitcoin, Ether Catch Friday Afternoon Bids, Rise to Three-Week Highs 1 hour ago Polymarket Weighs $9B Valuation Amid User Surge and CFTC Approval: The Information 1 hour ago Gemini Stock Jumps 45% in Early Trades After IPO 3 hours ago Tether Unveils USAT Stablecoin for U.S. Market, Names Bo Hines to Lead New Division 5 hours ago Traders Load Up on Nine-Figure Bullish Bitcoin Bets, Raising Liquidation Risks 7 hours ago Father of Crypto Bills, French Hill, Says Market Structure Effort Should Tweak GENIUS 7 hours ago About About Us Masthead Careers CoinDesk News Crypto API Documentation Blog Contact Contact Us Accessibility Advertise Sitemap System Status Disclosure & Polices CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies . CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of Bullish (NYSE:BLSH), an institutionally focused global digital asset platform that provides market infrastructure and information services. Bullish owns and invests in digital asset businesses and digital assets and CoinDesk employees, including journalists, may receive Bullish equity-based compensation. Ethics Privacy Terms of Use Cookie Settings Do Not Sell My Info © 2025 CoinDesk, Inc. X icon