Massachusetts has filed a lawsuit against Kalshi, claiming the predictions platform is operating sports gambling without a license. The state argues that Kalshi's sports wagers exceed those of licensed sportsbooks, and it seeks to halt Kalshi's operations while the case is pending. Kalshi contends that federal regulations from the Commodity Futures Trading Commission take precedence over state laws. The lawsuit highlights that a significant portion of Kalshi's trading volume comes from sports event wagers.