Massachusetts filed a lawsuit in state court Friday against Kalshi, alleging the predictions platform offers sports gambling without a license under the guise of events contracts.

“If Kalsi wants to be in the sports gaming business in Massachusetts, they must obtain a license and follow our laws,” Massachusetts Attorney General Andrea Joy Campbell said in a news release.

The state is also asking the court to prevent Kalshi from offering sports events contracts in Massachusetts while the lawsuit is pending.

Events contracts are regulated as a predictions market by the Commodity Futures Trading Commission. Kalshi has repeatedly argued in federal court that the CFTC’s status as a federal agency supersedes state regulators.

In the brief filed with the Suffolk County Superior Court, Massachusetts argues Kalshi is making more money on sports wagers than legal, licensed sportsbooks.

“Sports event wagers comprised approximately 70% of Kalshi’s trading volume between February 25, 2025, and May 17, 2025, which increased to 75% from March 18, 2025 onwards—Kalshi’s first day offering single-game March Madness markets,” the lawsuit says. “Kalshi made more from sports wagers than licensed sports wagering platforms DraftKings or FanDuel over the course of the same February through May timeframe.”

A Kalshi spokesperson told CNBC this week that $439 million worth of wagers had been placed on NFL contracts to date.

The company has been spearheading a national defense of sports prediction trades. This week, the company made oral arguments before the 3rd Circuit Court of Appeals in an appeal by the state of New Jersey, which was prevented from enforcing a cease and desist against Kalshi.