Massachusetts submits a revised complaint against Kalshi, accusing it of illegally offering sports betting and marketing to minors

A Massachusetts judge approved a revised complaint submitted by the state attorney general against the prediction market platform Kalshi on Tuesday. The new complaint accuses Kalshi of illegally offering sports betting without the permission of the state's betting commission and allegedly attracting users under the age of 21 to participate in betting through marketing on college campuses.

The state had previously issued a preliminary injunction against Kalshi, suspending its sports event contract business. However, the Commodity Futures Trading Commission (CFTC) had previously submitted a brief to the court supporting Kalshi, arguing that federal agencies have exclusive jurisdiction over prediction markets and are not subject to state-level regulation. Additionally, several traditional betting organizations in the U.S. are lobbying Congress to explicitly prohibit such sports-related event contracts in the Digital Asset Market Clarity Act (CLARITY Act).