Top Trending News: Massachusetts Lawsuit Alleges Kalshi Operates As An Illegal Sports Book
Massachusetts regulators have filed a suit to prevent the prediction market Kalshi from operating in the commonwealth. Scroll down for all the latest gambling headlines from around the globe and the top trending gambling articles at Gambling911.com.
The 43-page suit filed by Attorney General Andrea Campbell claims Kalshi operates in the same manner as a sports betting site.
The Commonwealth alleges Kalshi is “offering sports wagering under the guise of ‘event contracts’ … without the required licensure from the Massachusetts Gaming Commission (MGC).”
These “event contracts” (binary yes/no style) for sporting events are argued to satisfy the legal definitions of sports wagering under MA law.
The complaint alleges that Kalshi’s design and presentation of its platform—including user interface, odds presentation, payout displays—employ behavioral design strategies typical in gambling to encourage high risk/speculative behavior.
There are also age concerns. For example, regulated sports betting sites in Massachuetts require customers to be 21 or older. Kalshi allows those 18 and up.
The complaint further contends that “by failing to obtain a license, Kalshi evades the consumer protections, responsible gaming tools, and public health safeguards that Massachusetts law requires of all sports wagering operators.”
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- Lawmakers just pushed AB 831 through the Assembly with a clean 63-0 vote, aiming to put a stop to online sweepstakes-style casinos statewide. The bill managed to get through just in the nick of time with the legislative period in California coming to a close this past Friday. Now it’s up to Governor Gavin Newsom. He can sign the bill into law. But will he? Sponsored by Assemblymember Avelino Valencia, the AB 831 bill targets sweepstakes casinos that use “no purchase necessary” and “dual currency” models—think social casino platforms like Chumba Casino, LuckyLand Slots, and Global Poker. Governor Gavin Newsom has until October 12 to act. So far, he hasn’t said a word about it publicly. The bill can also become law without his signature should he choose to do nothing, or Newsom can veto the bill. While the powerful tribes in the state are against these sweepstakes casinos, the Social Gaming Leadership Alliance and VGW (parent company of Chumba and LuckyLand) do have some sway. (source: GamblingToday)
- Federal Loopholes May Have Opened the Door to Alternative Gambling Options Online - Clck2Houston examines loopholes that are permitting prediction markets like Polymarket and Kalshi to enter the Texas market even though that state does not even regulate online gambling companies. They point to a recent had that procleims: “I found a way to bet on the NFL even though we live in Texas,” reads a simulated text in one Instagram ad from prediction market app Kalshi. Through prediction markets and daily fantasy sports, also known as DFS, Texans have more access than ever to win — or lose — money based on the outcome of sporting events. And it can be done without leaving the state, where betting on contests or games is both illegal and a sticking point among state officials. Despite the ads’ claims, no new state or federal laws related to gambling regulation passed this year, except for a restriction on online lottery ticket couriers. Repeated efforts in the Texas Legislature to legalize sports betting, casinos and DFS have all faltered, leaving the games unregulated and unclear on these digital alternatives beyond a nearly decade-old nonbinding opinion from Attorney General Ken Paxton. (read more here)
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Crime
- Former Washington State Employee Sentenced for Embezzling Nearly $900,000 - TACOMA, Wash. — A former Washington state employee, Matthew Randall Ping, was sentenced to 18 months in prison for wire fraud after embezzling nearly $900,000 from the State of Washington, the Department of Justice (DOJ) announced Thursday. He manipulated credit card payment processing systems and expense review systems to carry out the scheme, according to Acting U.S. Attorney Teal Luthy Miller. Ping did plead guilty in June 2025 to wire fraud and filing false tax returns. The embezzlement is said to have taken place etween 2019 and 2023, he used his position as the department’s credit card custodian to embezzle $878,115, according to investigators.
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- Chris Costigan, Gambling911.com Publisher
