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Massachusetts Bettor Files Class Action Accusing Kalshi of Running an Unlicensed Sportsbook

The filing comes as courts weigh whether Kalshi’s event contracts fall under state gambling law or federal derivatives rules.

Overview

  • A Raynham resident filed a class-action complaint in Suffolk Superior Court that says Kalshi took sports bets in Massachusetts without a state license.
  • The plaintiff says he lost tens of thousands of dollars in about a month early in 2026 after placing sports wagers on Kalshi’s app and website.
  • He seeks repayment of all losses for affected users, disgorgement of Kalshi’s fees and profits, and a court order blocking the platform from offering sports bets without a license.
  • The complaints say Kalshi allows 18-year-olds to wager and lacks self-exclusion and simple guardrails like deposit or bet limits, leaving the plaintiff without tools he uses on licensed apps or through Robinhood, which hosts Kalshi markets.
  • Kalshi points to 2020 federal approval from the Commodity Futures Trading Commission for its event contracts, while a separate suit by the Massachusetts attorney general won a preliminary shutdown order that is now paused during appeal.