Massachusetts Attorney General Claims Kalshi Violates Sports Gambling Laws

Massachusetts Attorney General Andrea Joy Campbell has filed a lawsuit against prediction market Kalshi, alleging it violates the state's gambling laws by offering sports event contracts without a license.
The lawsuit claims that Kalshi's sports-related prediction markets function like licensed sports wagering products, requiring similar regulation and licensing.
The Attorney General argues that Kalshi uses behavioral design strategies to attract bettors, potentially increasing the risk of addiction and financial loss.
Kalshi's platform design emphasizes potential rewards in bright green font while presenting odds in black, which allegedly encourages risky bets by downplaying perceived risks.
Campbell insists that Kalshi must obtain a license to operate legally in Massachusetts, citing public health concerns related to sports wagering.
Kalshi responded by asserting its marketplace is fair, transparent, and federally regulated, criticizing Massachusetts for using outdated laws to challenge their operation.