New Objection from Massachusetts to Prediction Markets

Massachusetts Gaming Commission Chair Jordan Maynard said the commission regularly receives complaints from consumers who believe prediction markets fall under state law. In a written statement submitted to a U.S. House subcommittee on November 11, Maynard said confusion has grown over which agency protects consumers when it comes to platforms like Kalshi. This uncertainty may make it harder for consumers to obtain meaningful protection when a problem arises.

According to Maynard, consumers are contacting the commission about betting rules, disputes, and responsible gaming. However, the state regulator has no authority to provide these services for prediction market platforms. At the center of the debate is the claim that the operators' products are subject to federal commodities law and overseen by the Commodity Futures Trading Commission (CFTC). State officials, however, argue that contracts based on sports outcomes are sports betting and should be subject to local gambling laws.

Maynard said these operators lack the consumer protections found at licensed sports betting companies. The state has strict rules that bar people under 21 from gambling, regulate advertising, and protect student athletes. Massachusetts has also banned prop bets on individual college athletes. Prediction market platforms, however, are not required to meet the same standards.

The state sued Kalshi through the attorney general's office in September 2025. The lawsuit alleged that the company's sports event contracts violate the state's sports betting law. A state court issued a ban, but the appeals court suspended that restriction while Kalshi pursues its appeal. As a result, the company's sports contracts remain available in Massachusetts.

Maynard also questioned the CFTC's capacity to handle consumer complaints about prediction markets. He argued that the federal agency is trying to regulate the sector but lacks the staff and resources to provide consumer support nationwide. Although the state commission has referred complaints to the CFTC, it has not received confirmation that any concrete result has followed. It is noted that as prediction markets spread across the U.S., this regulatory gap could lead to serious problems.