Kalshi's Under-21 Snack Run: Massachusetts Judge Says State Can Upgrade Its Sports Betting Beef 🍿

A Massachusetts judge has cleared state authorities to expand their lawsuit against prediction markets platform Kalshi over allegations of unlicensed sports betting. Associate Justice Peter Krupp of Suffolk County Superior Court issued the ruling Tuesday, allowing prosecutors to file a 71-page amended complaint against the company.

The original lawsuit, brought by Massachusetts Attorney General Andrea Joy Campbell in September 2025, alleged Kalshi needed licensing from the Massachusetts Gaming Commission to offer online sports wagers in the state. The amended complaint sharpens that argument, alleging the company "targets those under 21 years of age and does little to stop them from using its platform." The filing cited Kalshi's marketing on university campuses and ads featuring people who "appear to be younger than 21 years old." According to the complaint, "Kalshi allows anyone who is at least 18 years old to create an account and wager on sports events by purchasing event contracts." In January, a judge granted a preliminary injunction barring Kalshi from offering sports event contracts while the case proceeds.

Kalshi now finds itself navigating a growing patchwork of state-level actions targeting prediction markets platforms, alongside competitors such as Polymarket. Both companies let users trade event contracts on outcomes spanning sports, politics and current events. Kalshi was previously blocked from offering sports bets in several jurisdictions.

The company has drawn federal support from the US Commodity Futures Trading Commission, which in April filed a brief in Massachusetts asserting "exclusive jurisdiction" over prediction markets. CFTC Chair Michael Selig has argued that event contracts on such platforms qualify as "swaps" under the Commodity Exchange Act and fall outside state oversight. "Congress has entrusted the CFTC with the sole authority to regulate commodity derivatives markets, including prediction markets," Selig said. "To any state that seeks to nullify federal law and seize authority over these markets, I say again: we will see you in court." Cointelegraph reached out to Kalshi for comment but did not receive an immediate response. Following the initial September complaint, a company spokesperson said Kalshi was "ready to defend" itself in court.

The Massachusetts case is one of several state-federal flashpoints over prediction markets, with national gaming, tribal and labor organizations also calling on Congress to weigh in on legislation such as the CLARITY Act to resolve jurisdictional questions.