Kalshi faces expanded lawsuits and court orders in Massachusetts and Michigan

A Massachusetts judge allowed state officials to file a 71‑page amended complaint against prediction‑market platform Kalshi, adding claims that the company markets sports‑event contracts to users under 21 and operates without a required state gaming license. The complaint argues that Kalshi’s contracts function as illegal sports wagering.

In Michigan, a state judge issued a temporary restraining order blocking Kalshi from offering sports‑event contracts to residents, imposing a $120,000‑per‑day fine for non‑compliance and mandating the use of a state‑approved geolocation service. The order cites concerns that the platform exploits vulnerable citizens. Both cases are part of a broader U.S. dispute over whether federal CFTC jurisdiction over prediction markets preempts state gambling laws, with Nevada already enforcing similar restrictions.

Kalshi, valued at $22 billion, says it will contest the orders in court.