Kalshi Sued Over Alleged Unlicensed Sports Wagering

The startup Kalshi is facing legal action for allegedly operating unlicensed sports wagering in Massachusetts. The lawsuit filed by Attorney General Andrea Joy Campbell alleges violations of state gambling laws and points to the platform’s failure to obtain a license. Kalshi counters that federal oversight by the Commodity Futures Trading Commission (CFTC) preempts state regulations, claiming their contracts fall under economic instruments subject to CFTC authority.