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Judge allows amended complaint alleging Kalshi marketed to under-21 users

Judge allows amended complaint alleging Kalshi marketed to under-21 users

The revised filing says Kalshi used social media and university campus marketing to target people younger than 21, while the broader case centers on whether its sports event markets violate state law.

Fact Check
Multiple independent outlets, including the authoritative legal news source Law360, confirm that Suffolk County Superior Court Associate Justice Peter Krupp allowed Massachusetts to file an amended complaint adding allegations that Kalshi marketed to and targeted under-21 users through university campus marketing and social media imagery. The broader case concerns whether Kalshi's sports event markets violate Massachusetts state gaming law and require licensing, consistent with the claim. Every element of the claim is corroborated.
Summary

A Massachusetts Superior Court judge on July 1 approved the state attorney general’s amended complaint against Kalshi, allowing the case to expand beyond allegations that the platform was illegally offering sports betting. The revised complaint says Kalshi let users aged 18 and older trade sports event contracts and marketed to people under 21 through social media and on college campuses without a state gaming license. The dispute also fits into a broader regulatory clash over prediction markets, as the CFTC has argued it has exclusive jurisdiction over such contracts while state authorities challenge Kalshi’s sports event offerings under state law.

Terms & Concepts
  • prediction market: A platform where users trade contracts tied to the outcome of future events.
  • sports event contracts: Tradable contracts whose value depends on the outcome of sporting events.
  • CFTC: The U.S. commodities regulator, which has argued it has sole authority over prediction markets.