Massachusetts Expanding Lawsuit Against Kalshi
Jesse M. Cox Published 06/07/2026
A judge has granted permission for the Massachusetts Attorney General's office to expand its lawsuit against Kalshi. Suffolk County Superior Court Associate Justice Peter Krupp allowed Massachusetts Attorney General Joy Campbell's office to file a 71-page amended complaint in the state's lawsuit against prediction market site Kalshi. The amendments build on a filing originally alleging that Kalshi engaged in sports wagering in violation of state laws.
The amendments to the complaint include allegations that Kalshi targets players under the Massachusetts legal gambling age of 21. Campbell's office previously gained a preliminary injunction in January that barred Kalshi from offering sports-event contracts in the state while the case proceeds.
Massachusetts filing accuses Kalshi of pursuing underage players
The Massachusetts suit alleges that Kalshi entices underage players to sign up and play prediction markets on its site. While the legal age to play at federally regulated prediction market sites is 18 years old, the legal age to wager at state-regulated sports betting sites in Massachusetts is 21. It's one of many differences that have state gambling regulators clashing with prediction market sites.
The Massachusetts filing claims that Kalshi “targets those under 21 years of age and does little to stop them from using its platform." In its filing, the Massachusetts Attorney General's office went on to allege that the company’s marketing to university campuses is presenting images in ads of people who “appear to be younger than 21 years old.”
“Kalshi allows anyone who is at least 18 years old to create an account and wager on sports events by purchasing event contracts,” alleged Massachusetts authorities.
Campbell fires latest salvo at Kalshi
Massachusetts AG Campbell has already taken some victory laps in court at Kalshi's expense. In January, her office won a preliminary injunction. The ruling prohibited Kalshi from accepting online sports wagers and related events contracts from Massachusetts customers. This would be the case until the company follows the state laws governing sports gaming. This would include securing a license to operate a sports betting site from the Massachusetts Gaming Commission (MGC).
The order also denied Kalshi’s motion to dismiss the AGO’s lawsuit filed against them in September 2025. That court filing alleged that Kalshi offers unregulated sports betting under the guise of sports event contracts.
“The Court has made clear that any company that wants to be in the sports gaming business in Massachusetts must play by our rules – no exceptions,” Campbell said in a statement.
Kalshi's lawyers counter that all of the company's products fall under the category of federal derivatives law. They argue that the company is federally regulated by the Commodities Futures Trading Commission (CFTC). The CFTC is backing that argument in court on behalf of Kalshi in several states.
“Congress has entrusted the CFTC with the sole authority to regulate commodity derivatives markets, including prediction markets,” CFTC Chair Michael Selig said. “To any state that seeks to nullify federal law and seize authority over these markets, I say again: we will see you in court.”
Michigan also shut down Kalshi
Massachusetts was recently joined by Michigan. That state has also successfully obtained a court ruling prohibiting Kalshi from offering sports event contracts. Granting a temporary injunction, a Michigan judge ordered Kalshi to geofence its sports event contracts in the state. This will be done for 14 days while the matter is given further consideration by the court.
Kalshi is also facing active injunctions or suits in Kentucky, New Mexico, and Illinois.