Massachusetts filed a lawsuit against Kalshi, accusing the platform of operating as a sports gambling site without a license. The state is seeking to prevent Kalshi from offering sports events contracts in Massachusetts. Kalshi argues that the Commodity Futures Trading Commission’s oversight trumps state regulations. The state claims Kalshi made more from sports wagers than licensed sportsbooks like DraftKings and FanDuel.

The lawsuit alleges that sports event wagers made up a significant portion of Kalshi’s trading volume, with the platform making more money on sports wagers than licensed sportsbooks. A Kalshi spokesperson revealed that $439 million worth of wagers had been placed on NFL contracts. The company has been defending sports prediction trades on a national level, recently making oral arguments before the 3rd Circuit Court of Appeals in a case with the state of New Jersey.

Read more at CNBC: Massachusetts sues Kalshi alleging illegal sports gambling