New York Attorney General Letitia James joined 37 other attorneys general in support of Massachusetts’ lawsuit against Kalshi, a platform accused of offering illegal sports betting.
The group filed a brief with Massachusetts’ top court, saying Kalshi must follow state gambling laws.
“Prediction markets cannot ignore states’ gambling laws that are designed to protect consumers,” James said in a statement. “Kalshi’s event contracts for sports are just illegal gambling by another name, and they should play by the same rules as every other licensed gambling platform.”
Kalshi lets users bet on events such as elections, award shows, and sports. State officials said most of the platform’s betting is tied to sports.
Massachusetts sued Kalshi in September 2025, saying it offered sports betting without a license. A lower court blocked the company from taking sports bets in the state while the case moves forward.
Kalshi says its bets are financial products regulated by the federal Commodity Futures Trading Commission, not by states.
James and the coalition said that argument is wrong. They said federal law was meant to regulate finance after the 2008 crisis, not legalize sports betting nationwide.
They also said states are best able to regulate gambling, protect consumers, limit youth access and fund programs through tax revenue.
Earlier this week, James filed similar lawsuits in New York against Coinbase and Gemini.
