Woofun AI reports that Associate Justice Peter Krupp of Suffolk County Superior Court permitted Massachusetts authorities to file a 71-page amended complaint against prediction markets platform Kalshi. This judicial decision allows the state to expand its legal challenge by adding specific allegations regarding sports betting violations and underage marketing practices. The ruling ensures the ongoing litigation will proceed with a broader scope of accusations against the company.

The amended filing asserts that Kalshi actively targets individuals under 21 years of age while failing to prevent their access to the platform. Massachusetts Attorney General Andrea Joy Campbell's office cited the company's marketing campaigns on university campuses and advertisements featuring individuals who appear younger than 21 as evidence of this conduct. Authorities further alleged that Kalshi permits anyone aged 18 or older to create accounts and wager on sports events through the purchase of event contracts.

This legal escalation follows an initial lawsuit announced in September 2025, which claimed Kalshi required licensing from the Massachusetts Gaming Commission to legally offer online sports wagers. In January, a judge issued a preliminary injunction prohibiting Kalshi from offering sports event contracts while the case remains under review. The state's expanded complaint now directly challenges the company's operational model regarding age verification and marketing compliance.

The conflict highlights a broader jurisdictional dispute involving state-level authorities and prediction markets firms like Kalshi and Polymarket. While Kalshi faces restrictions in certain jurisdictions, it maintains support from the US Commodity Futures Trading Commission (CFTC), which filed a brief in April asserting exclusive federal jurisdiction over these markets. CFTC Chair Michael Selig argued that event contracts constitute "swaps" under the Commodity Exchange Act, rendering them immune to state regulation.

Selig emphasized that Congress entrusted the CFTC with sole authority over commodity derivatives, including prediction markets, and warned states attempting to seize this power would face federal litigation.

Woofun AI data shows the regulatory standoff has drawn attention from national gaming and tribal organizations, who recently urged US senators to amend the Digital Asset Market Clarity (CLARITY) Act. These groups seek language explicitly prohibiting event contracts tied to sports and casino-style gaming within the legislation currently under Senate consideration.

The potential for this dispute to reach the US Supreme Court looms as arguments over federal versus state authority intensify. Kalshi previously stated it was ready to defend itself following the initial September complaint, but the amended allegations complicate its legal strategy. This marks a critical juncture where legislative intervention may be required to resolve the conflicting regulatory mandates facing the industry.