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Prediction market platform Kalshi has pledged to contest a recent lawsuit from the US state of Massachusetts, which charges the firm with providing unauthorized sports betting to its citizens.
“We are proud to be the organization that has innovated this technology and are prepared to defend it once again in a court of law,” a representative for Kalshi informed Cointelegraph on Friday.
“Prediction markets are a vital advancement of the 21st century, and all Americans should have the opportunity to utilize them,” Kalshi remarked.
Kalshi is ready to battle amid additional legal obstacles
The civil lawsuit, submitted on Friday by the Commonwealth of Massachusetts in Suffolk County Superior Court, alleged that Kalshi camouflages sports betting as “event contracts” and breaches the state’s stringent gambling statutes.
“Kalshi is infringing upon the Commonwealth’s stringent sports wagering laws and regulations by offering unauthorized sports betting to Massachusetts inhabitants,” the document asserted.
It additionally claimed that as of May 2025, over three-quarters of Kalshi’s trading activity originates from sports—a larger proportion, the document noted, than industry leaders DraftKings or FanDuel.
However, the Kalshi spokesperson indicated that Massachusetts regulators opted for legal action instead of engaging directly to resolve the situation:
“Instead of having a conversation with Kalshi as numerous other states have done, Massachusetts is attempting to obstruct Kalshi’s innovations by depending on outdated regulations and perceptions.”
Kalshi asserts it’s governed by the CFTC
Kalshi has previously contended that the Commodity Futures Trading Commission (CFTC) oversees it at the federal level and that it does not fall under state gambling authority.
It has received cease-and-desist notifications from other states, including Arizona, Montana, Ohio, and Illinois.
Related: Polymarket teams with Chainlink to enhance market resolution accuracy
The case arrives as the blockchain-enabled prediction market Polymarket is reportedly gearing up for a launch in the US.
Citing sources acquainted with the situation, Business Insider reported on Friday that Polymarket is contemplating a return to the US while seeking new funding that could potentially more than triple its June valuation of $1 billion. One investor placed the company’s value at as much as $10 billion.
This occurs just days after Polymarket’s CEO Shayne Coplan stated in an X post on Sept. 4 that “Polymarket has been cleared to go live in the USA by the CFTC.”
“Stay tuned,” he added.
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