What is Kalshi accused of in Massachusetts?

Kalshi is accused of operating an unlicensed sports wagering enterprise by offering financial bets on sports event outcomes.

What is Kalshi's defense against state gaming laws?

Kalshi argues that its prediction market contracts are subject to the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC).

When will the Massachusetts judge rule on Kalshi's case?

The judge plans to issue a ruling on the case in January.

Home / Business and Economy / Judge Questions Betting on 'Trivial' Sports Events

Judge Questions Betting on 'Trivial' Sports Events

11 Dec, 2025

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Summary

Massachusetts judge questions Kalshi's legality for offering sports bets.
State argues Kalshi operates unlicensed sports wagering, targeting young adults.
Kalshi claims federal jurisdiction over its prediction market contracts.

Judge Questions Betting on 'Trivial' Sports Events

A Massachusetts judge expressed doubt regarding the legality of prediction market operator Kalshi's offerings to state residents, particularly its provision of betting on sports events. The judge questioned whether such activities could be considered "trivial" and if they comply with gaming regulations.

The state's legal representatives urged the court to halt Kalshi's operations, asserting that the company is functioning as an unlicensed sports wagering enterprise. They highlighted concerns about the addictive nature of the product and its availability to individuals as young as 18.

Kalshi's defense centers on the argument that its sports event contracts are derivatives subject to the exclusive oversight of the U.S. Commodity Futures Trading Commission, a stance the judge found difficult to reconcile with the nature of sports betting.

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