Kalshi sued, accused of ‘unlawful conduct’ in Massachusetts by self-described gambling addict
THAT’S MONEY. BET ON NBA ACTION AS IT HAPPENS. HEY, DAN, HAVE YOU HEARD OF CALSCI? YEAH, THE PREDICTION MARKET. THEY’LL LET YOU TRADE ANYTHING FROM SPORTS TO ALIEN SIGHTINGS. IF IT FEELS LIKE GAMBLING IS EVERYWHERE LATELY, THAT’S BECAUSE IT IS. FROM SPORTS BETTING TO PREDICTION MARKETS, GAMBLING IS MORE ACCESSIBLE THAN EVER BEFORE. IT’S A LOOMING PUBLIC HEALTH CRISIS. IN FACT, IT’S ALREADY HERE. OUR INDUSTRY ABSOLUTELY RECOGNIZES THAT GAMBLING IS AN ACTIVITY THAT CAN BECOME PROBLEMATIC. THIS MORNING, MASSACHUSETTS GAMING COMMISSION CHAIR JORDAN MAYNARD GOES ON THE RECORD ABOUT HOW MASSACHUSETTS CAN PLAY ITS CARDS RIGHT IN AN EVOLVING INDUSTRY. FROM WCVB CHANNEL 5 THE INSIDE WORD FROM BEACON HILL TO CAPITOL HILL, TODAY’S NEWSMAKERS ARE GOING ON THE RECORD. GOOD MORNING EVERYONE. IT IS SUNDAY, APRIL 19TH. I’M ED HARDING, I’M SHARMAN SACCHETTI. AND JOINING US AT THE TABLE IS JORDAN MAYNARD, THE MASSACHUSETTS GAMING COMMISSION CHAIR. THANKS SO MUCH FOR BEING HERE. THANKS FOR HAVING ME, I APPRECIATE IT. GREAT TO SEE YOU HERE. WE HAD WHAT, ALMOST ANY DATE ON THE CALENDAR IS A DATE. DOESN’T MATTER WHICH ONE. WE JUST COME OUT OF THE NCAA TOURNAMENT. NOW. WE KEEP MOVING FORWARD ON THE BETTING CALENDAR. LAST MONTH, YOU WERE APPOINTED TO ANOTHER FIVE YEAR TERM. YOU’VE BEEN SERVING SINCE, WHAT, 2022? SO WHAT ARE YOUR GOALS? WHAT’S YOUR VISION? WHAT ARE YOU LOOKING AT AS YOU AS YOU LOOK AHEAD? WELL, FIRST AND FOREMOST, I HAVE TO THANK THE GOVERNOR, THE LIEUTENANT GOVERNOR, THE ATTORNEY GENERAL AND THE TREASURER FOR GIVING ME THE OPPORTUNITY TO CONTINUE TO SERVE. I GET THE OPPORTUNITY TO WORK WITH REALLY GREAT PEOPLE, BOTH COMMISSIONERS AND STAFF, THAT WORK AROUND THE CLOCK. AND SO WE’RE EXCITED, BUT WE’RE JUST LIKE EVERYBODY ELSE. WE’RE EXCITED ABOUT THE FACT THAT THE CELTICS SEEM TO BE HOPEFULLY GOING DEEP. VERY GOOD. YEAH. AND AND THE BRUINS ARE IN A GREAT SPOT. AND OF COURSE YOU KNOW FIFA WORLD CUP JUST YOU KNOW LIKE EVERYBODY ELSE. BUT WITH THOSE EVENTS COME INCREASED INTEREST. YEAH. AND THAT INCREASED INTEREST GIVES US OPPORTUNITIES TO TALK ABOUT WHAT WE DO AND WHY WE DO IT. WE WANT TO MAKE GAMING SAFER IN MASSACHUSETTS. AND WE HAVE A COUPLE NEW PROGRAMS ARE ROLLING OUT. SO. SO WHERE DO YOU SEE THE INDUSTRY GOING? BECAUSE INEVITABLY YOU’RE RIGHT, THE CELTICS ARE IN THE PLAYOFFS. THE BRUINS ARE IN THE PLAYOFFS. MAYBE THE RED SOX, BUT EVENTUALLY THE PATRIOTS ARE GOING TO COME BACK AGAIN. THERE IS THERE IS ALWAYS SOMETHING AVAILABLE TO BET ON. YEAH, I THINK THAT THE MOST IMPORTANT THING FOR CONSUMERS TO KNOW IS THAT THERE ARE OPPORTUNITIES TO BET SAFER. AND THAT’S WHAT THE LEGAL. OPERATOR. WE HAVE SEVEN ONLINE LICENSEES. WE HAVE THREE CASINO SPORTSBOOK LICENSEES. WE ACTUALLY HAVE A SEAL OF APPROVAL THAT CONSUMERS CAN LOOK TO TO SEE IF THEY’RE BETTING ON A LICENSED SPORTSBOOK, BECAUSE WE BELIEVE THAT REGULATED GAMING IS SAFER GAMING. ALL RIGHT. WELL, AS YOU MENTIONED, IT IS A BUSY, BUSY TIME OF YEAR. LATER TODAY, CELTICS START THEIR PLAYOFF RUN. THE NHL PLAYOFFS STARTED YESTERDAY. YOU’RE COMING OFF MARCH MADNESS AS ED MENTIONED. AND THEN OF COURSE THE WORLD CUP IN THE MONTHS AHEAD. WHAT ARE THE BIG PRIORITIES FOR THE GAMING COMMISSION DURING SOME OF THESE EVENTS? WHAT SHOULD PEOPLE LOOK FOR? WELL, THEY NEED TO MAKE SURE THAT THEY’RE BETTING WITH THE REGULATED OPERATOR, THE UNREGULATED MARKET AND THE PREDICTION MARKETS ARE LESS SAFE THAN REGULATED MARKETS. THAT’S WHY THEY WERE LEGALIZED. WE ACTUALLY ARE REALLY EXCITED ABOUT A NEW PROGRAM THAT WE HAVE CALLED PLAY WELL, AND IT BUILDS UPON A DECADE PLUS OF INFORMATION THAT WE’VE HAD THAT GIVES TOOLS AND RESOURCES TO BETTERS WHO MAY EXPERIENCE PROBLEMS. SO WE WANT TO MAKE SURE PEOPLE HAVE ACCESS TO AS MANY RESOURCES AS THEY CAN, AS THEY DO ENGAGE WITH THESE PRODUCTS MORE OVER THE COMING MONTHS AHEAD. SO WHAT ARE YOU WATCHING OUT FOR? WHAT ARE SOME OF THE THINGS YOU’RE KEEPING AN EYE ON? YEAH, WE JUST WANT TO MAKE SURE THAT PEOPLE ARE HAVING ACCESS TO THE LEGAL MARKET. WE’RE ALWAYS WORRIED ABOUT FOLKS WHO EXPERIENCE GAMING HARMS, AND WE HAVE A ROBUST RESEARCH AND RESPONSIBLE GAMING PROGRAM. WE’RE THE ONLY. JURISDICTION IN THE COUNTRY THAT HAS THESE KIND OF RESOURCES DEVELOPED AND DEVOTED TO THIS. OUR RESEARCH ARM, FOR EXAMPLE, LOOKS AT WHAT’S GOING ON IN THE INDUSTRY AT LARGE AND INFORMS US AND OTHER LAWMAKERS ABOUT WHAT WE’RE DOING. AND THEN THE RESPONSIBLE GAMING ARM, WE WANT TO MAKE SURE PEOPLE HAVE ACCESS TO RESOURCES IF THEY NEED THEM. IF SPORTS BETTING IS NOT GOING AWAY, WE IF IF WE COULD AND WE LIKE IT, CAN WE WE COULD BE SEEING MORE SPORTS BETTING HERE IN MASSACHUSETTS, IN EVERY STATE IN THE UNION. I MEAN, OBVIOUSLY IT’S GOING TO CONTINUE TO GROW. SO YOUR COMMISSION ACTUALLY APPROVED THE REOPENING OF THE APPLICATION PROCESS FOR COMPANIES THAT ARE SEEKING SPORTS BETTING LICENSES. SO WHY DO YOU THINK THE STATE NEEDS MORE? WELL, WHAT I WOULD SAY IS WE’RE HERE TO MAKE SURE THAT IF WE OFFER A PRODUCT, IF A LICENSEE OFFERS A PRODUCT, THAT WE HOLD THEM TO ACCOUNT AND WE HOLD THEM TO HIGH STANDARDS, IT’S A, YOU KNOW, IT’S, IT’S UP TO THE LEGISLATURE TO SET THE NUMBER OF LICENSES. AND WE HAVE ABOUT FIVE LICENSES AVAILABLE. AND SO A COMPANY ASKED US TO REOPEN THE PROCESS. WE’RE TRYING TO STAY TRUE TO THE LAW. AND SO WE’RE GOING TO REOPEN IT. BUT THEY HAVE TO MEET OUR RIGOROUS STANDARDS IN ORDER TO GET A LICENSE. THERE’S A NEED FOR IT, THOUGH, YOU WOULD SUSPECT, RIGHT? I MEAN, JUST IN TERMS OF PEOPLE THAT WANT TO BET, THERE IS A NEED FOR MORE. CORRECT. WHAT I WOULD SAY IS, IS THAT IF PEOPLE CHOOSE TO BET, IT’S ALWAYS BETTER TO BET WITH A REGULATED. SPORTSBOOK. YEAH. IS SPORTS BETTING A GOOD THING IN YOUR OPINION? WHAT I WILL SAY IS THAT MANY PEOPLE SEE IT AS A FORM OF ENTERTAINMENT. AND I THINK THAT FOR MOST PEOPLE IT IS. BUT WE KNOW THAT 2% OF THE POPULATION EXPERIENCES THAT’S FROM OUR RESEARCH EXPERIENCES, GAMING HARMS. AND SO WE HAVE TO MAKE SURE THOSE PEOPLE HAVE THE RESOURCES TO BE SAFE. STATE LAWMAKERS HAVE SHELVED EFFORTS TO LEGALIZE ONLINE CASINO GAMING. A BILL WOULD HAVE ALLOWED THE STATE’S THREE LICENSED CASINOS TO EXPAND INTO THAT DIGITAL SPACE. SUPPORTERS POINT TO WIDESPREAD USE OF OFFSHORE GAMBLING SITES, AND THEY TALK A LOT ABOUT PROJECTIONS OF REVENUE. $200 MILLION IN ANNUAL TAX REVENUE. DO YOU THINK ONLINE CASINO GAMING SHOULD BE LEGALIZED. SO IF IT IS LEGALIZED WE’RE GOING TO MAKE SURE THAT WE DO A GOOD JOB AT THE GAMING COMMISSION. BUT THE DECISION OF WHETHER OR NOT TO LEGALIZE IT, THAT’S UP TO THE LEGISLATURE. WE’RE HAPPY TO ALWAYS BE A RESOURCE. AND TO THAT POINT, OUR RESEARCH ARM ACTUALLY PRODUCED A STUDY ON IGAMING AND HOW WE CAN PUT SOME SAFEGUARDS AROUND IT THAT WILL BE RELEASED NEXT MONTH, AND WE ARE GOING TO HAVE THE PRINCIPAL RESEARCHER ACTUALLY JOIN US AT A GAMING COMMISSION MEETING TO DISCUSS IT, AND WE’RE GOING TO MAKE THAT AVAILABLE TO ALL THE LEGISLATORS. SO YOU’RE NOT TAKING A POSITION ON IT, BUT YOU THINK THERE’S A WAY IF IT DOES EVENTUALLY END UP LEGALIZED, THAT YOU COULD ROLL THIS OUT SAFELY HERE. WE WANT TO MAKE SURE THAT ANY PRODUCT THAT WE REGULATE IS SAFER THAN THE UNREGULATED MARKET. SO LET’S DRILL DOWN A LITTLE DEEPER. THE STATE ATTORNEY GENERAL, ANDREA CAMPBELL, IS ACTUALLY SUING CHELSEA, WHICH IS A SELF-DESCRIBED ONLINE PREDICTION MARKET. SHE WAS ARGUING THAT THE COMPANY SHOULD FOLLOW STATE LAWS ON ON SPORTS GAMBLING. SIMPLE QUESTION, BUT IT MAY NOT HAVE A SIMPLE ANSWER. DO YOU AGREE WITH THE ATTORNEY GENERAL? I WHOLEHEARTEDLY AGREE WITH THE ATTORNEY GENERAL CAMPBELL ON HER LAWSUIT AGAINST KOSKI. I THINK THESE PREDICTION MARKETS ARE ILLEGALLY OFFERING SPORTS WAGERS IN VIOLATION OF THE LAW. TELL ME WHY. EXPLAIN TO ME WHY YOU BELIEVE IT ILLEGALLY. DOES THAT. WELL, THEY’RE NOT FOLLOWING THE LAWS OF THE COMMONWEALTH. LET ME TELL YOU, MY TWO PRINCIPAL PROBLEMS WITH IT. FIRST OF ALL, WHAT THEY’RE DOING IS THEY’RE TARGETING PEOPLE UNDER 21 YEARS OLD, AND THEY ARE ACTIVELY TAKING THE BETS FROM THOSE PEOPLE. WE WOULD NEVER ALLOW OUR LICENSEES TO DO THAT. AND IF WE FOUND OUT ABOUT IT, WE WOULD TAKE ACTION. AND THE SECOND REASON IS, IS THEY’RE NOT PUTTING UP ANY SAFEGUARDS AROUND RESPONSIBLE GAMING AND GIVING ANYONE TOOLS TO ACCESS IT. CAN I GIVE YOU AN EXAMPLE? I KNOW WE HAVE MARATHON MONDAY COMING UP RIGHT TOMORROW. YEAH, A FEW A FEW YEARS AGO, ONE OF THE OPERATORS CAME AND SAID, WE WANT TO ALLOW BETTING ON THE MARATHON AND THE BOSTON ATHLETIC ASSOCIATION REACHED OUT TO US AND SAID, WE DON’T WANT YOU TO ALLOW THAT. AND SO WE DIDN’T. AND THERE WERE TWO REASONS. ONE WAS TO PROTECT THE INTEGRITY OF THE RACE, AND THE SECOND WAS TO PROTECT THE RUNNERS. I CAN TELL YOU THAT I CHECKED AND THESE PREDICTION MARKETS TODAY ARE OFFERING BETS ON ON THE MARATHON. THEY’RE DOING AN END RUN AROUND THE BOSTON ATHLETIC ASSOCIATION AND THE LAW. WELL, YOU KNOW, UNDER POLITICAL PRESSURE, POLYMARKET REMOVED A FORUM THAT RECENTLY RELATED TO THE RESCUE MISSION OF THOSE AMERICAN MILITARY SERVICE MEMBERS WHO WERE SHOT DOWN IN IRAN AND EVENTUALLY RESCUED. THE PAGE ALLOWED PEOPLE TO BET ON THE RESCUE OF THOSE TWO AIRMEN. CONGRESSMAN MOULTON, HE SPOKE UP ABOUT THAT, A VETERAN, HE CALLED THAT DISGUSTING. DO YOU THINK THIS SHOULD RAISE THE LEVEL OF SCRUTINY AROUND PREDICTION MARKETS AND MAYBE JUST NOT AT THE STATE LEVEL? SHARMAN TAKING BETS ON WAR AND DEATH IS DISGUSTING, AND WE WOULD NEVER ALLOW THAT ON A REGULATED SITE IN MASSACHUSETTS. IT’S DISTURBING. WHAT SHOULD THE FEDERAL GOVERNMENT DO MORE IN THESE SITUATIONS? CERTAINLY WHAT I WILL SAY IS IF ANYBODY WANTS TO OFFER WAGERS, THEY SHOULD BE HIGHLY REGULATED. THAT’S WHAT MAKES IT MAKES IT SAFER. YOU MENTIONED THAT THE VA DIDN’T WANT DIDN’T WANT BETTING TO BE BECAUSE IT MIGHT INTERFERE WITH THE INTEGRITY OF THE EVENT. SO ARE YOU SUGGESTING THAT SINCE MAJOR LEAGUE BASEBALL DOES AND THE NBA DOES AND THE NHL DOES AND THE NFL DOES THAT, YOU WOULD QUESTION THE INTEGRITY OF THOSE OPERATIONS? WE ACTUALLY WORK WITH THOSE LEAGUES AND WE WORK WITH EVERY LEAGUE THAT IS BET ON TO MAKE SURE THAT THEY HAVE INTEGRITY MONITORING SERVICES IN PLACE. AND SO WE ENGAGE WITH THEM JUST LIKE WE ENGAGE WITH THE BAR. IF THEY RAISE THOSE FLAGS TO US, WE WOULD TAKE THAT INTO ACCOUNT. AND WE DID WITH THE BA. GREAT. OUR CONVERSATION CONTINUES AFTER THE
Kalshi sued, accused of ‘unlawful conduct’ in Massachusetts by self-described gambling addict
Updated: 3:34 PM EDT Apr 30, 2026
A self-described gambling addict from Raynham recently filed a class action lawsuit accusing Kalshi of offering illegal betting to Massachusetts residents, according to a complaint filed in Suffolk Superior Court. The legal action is the latest escalation in a fight over the prediction market industry’s operations in the Bay State. The lawsuit, filed in Suffolk Superior Court on April 22, 2026, alleges that Kalshi and related companies allowed users to place sports wagers without a Massachusetts license, violating state gambling laws and causing financial losses to consumers.^ Video above: Gaming Commission chair talks prediction markets with OTR”Defendants’ unlawful conduct has caused substantial harm to Massachusetts consumers,” the complaint states, alleging users lost money on wagers and were exposed to risks associated with online gambling.The plaintiff, identified as Nicholas Smith of Raynham, said he placed sports wagers through Kalshi’s platform and through Robinhood. According to his lawsuit, Smith lost “tens of thousands of dollars” between January and February 2026. Smith described himself as someone who “struggles with gambling addiction.”He voluntarily excluded himself from betting in casinos and online sports betting platforms, but said that Robinhood and Kalshi did not offer the same protections. Smith’s lawsuit alleges that Kalshi’s “event contracts” function like traditional sports bets, allowing users to wager on outcomes of games by buying “yes” or “no” positions, with payouts tied to the results.”The ‘prediction market’ structure is thus a pretext designed to disguise sports betting as financial trading. In substance and effect, Kalshi operates an unlicensed online sports book in Massachusetts, in violation of Massachusetts law,” the lawsuit alleges. Smith’s lawsuit seeks damages for alleged losses, as well as an order blocking the companies from offering sports wagers in Massachusetts without proper licensing.What are prediction markets?Prediction markets are composed of event contracts, with the prices connected to what traders are willing to pay, which theoretically indicates the perceived probability of an event occurring. The buy-in for each contract ranges from zero dollars to $1 each, reflecting a zero percent to 100% chance of what traders think could happen.The markets rose to prominence in politics, but the array of typically yes-or-no questions may include everything from the weather to the Oscar for best picture.Massachusetts legal contextThe lawsuit comes as Massachusetts regulators and courts continue to examine whether prediction markets like Kalshi and competitor Polymarket fall under state gambling laws.Smith’s case references earlier litigation brought by the Massachusetts attorney general, in which a Superior Court judge found the state was likely to succeed in arguing Kalshi’s offerings constitute sports wagering requiring a license.In February, Polymarket preemptively sued Massachusetts over the state’s gambling laws.
BOSTON —
A self-described gambling addict from Raynham recently filed a class action lawsuit accusing Kalshi of offering illegal betting to Massachusetts residents, according to a complaint filed in Suffolk Superior Court. The legal action is the latest escalation in a fight over the prediction market industry’s operations in the Bay State.
The lawsuit, filed in Suffolk Superior Court on April 22, 2026, alleges that Kalshi and related companies allowed users to place sports wagers without a Massachusetts license, violating state gambling laws and causing financial losses to consumers.
^ Video above: Gaming Commission chair talks prediction markets with OTR
“Defendants’ unlawful conduct has caused substantial harm to Massachusetts consumers,” the complaint states, alleging users lost money on wagers and were exposed to risks associated with online gambling.
The plaintiff, identified as Nicholas Smith of Raynham, said he placed sports wagers through Kalshi’s platform and through Robinhood. According to his lawsuit, Smith lost “tens of thousands of dollars” between January and February 2026. Smith described himself as someone who “struggles with gambling addiction.”
He voluntarily excluded himself from betting in casinos and online sports betting platforms, but said that Robinhood and Kalshi did not offer the same protections.
Smith’s lawsuit alleges that Kalshi’s “event contracts” function like traditional sports bets, allowing users to wager on outcomes of games by buying “yes” or “no” positions, with payouts tied to the results.
“The ‘prediction market’ structure is thus a pretext designed to disguise sports betting as financial trading. In substance and effect, Kalshi operates an unlicensed online sports book in Massachusetts, in violation of Massachusetts law,” the lawsuit alleges.
Smith’s lawsuit seeks damages for alleged losses, as well as an order blocking the companies from offering sports wagers in Massachusetts without proper licensing.
What are prediction markets?
Prediction markets are composed of event contracts, with the prices connected to what traders are willing to pay, which theoretically indicates the perceived probability of an event occurring. The buy-in for each contract ranges from zero dollars to $1 each, reflecting a zero percent to 100% chance of what traders think could happen.
The markets rose to prominence in politics, but the array of typically yes-or-no questions may include everything from the weather to the Oscar for best picture.
Massachusetts legal context
The lawsuit comes as Massachusetts regulators and courts continue to examine whether prediction markets like Kalshi and competitor Polymarket fall under state gambling laws.
Smith’s case references earlier litigation brought by the Massachusetts attorney general, in which a Superior Court judge found the state was likely to succeed in arguing Kalshi’s offerings constitute sports wagering requiring a license.
In February, Polymarket preemptively sued Massachusetts over the state’s gambling laws.