Raynham Man Sues Kalshi, Seeks Repayment for Sports Bets
A Raynham man who claims he struggles with a gambling addiction and lost tens of thousands of dollars on Kalshi’s sports-betting markets within one month has sued the company in…
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A Raynham man who claims he struggles with a gambling addiction and lost tens of thousands of dollars on Kalshi's sports-betting markets within one month has sued the company in a class-action suit to recover the funds.
According to a Boston.com report, the plaintiff, Nicholas Smith, said he usually registers for voluntary self-exclusion programs that help him avoid sports wagering. However, neither Kalshi nor Robinhood, which hosts Kalshi's prediction markets, provided any guardrails.
In his lawsuit, Smith said he succumbed to his addiction after Kalshi moved into sports wagering in January 2025, ahead of significant sporting events such as the Super Bowl.
Massachusetts Attorney General Andrea Campbell has also pursued action against Kalshi. According to Boston.com, Campbell won a January preliminary injunction barring Kalshi from accepting wagers from state residents until it aligns with state requirements.
Kalsh, in turn, appealed the ruling. In February, the Massachusetts Appeals Court granted Kalshi's request to delay the shutdown until after the appeal is decided.
Kalshi has operated under federal CFTC approval for event contracts since 2020, enabling nationwide operations and yes/no bets on a broad range of topics.
Prosecutors argue that Kalshi is attempting to bypass key consumer protections. According to the complaint, the company permits users as young as 18 to place bets even though the legal betting age in Massachusetts is 21.
Kalshi has not responded to requests for comment on the matter.
The class-action lawsuit against Kalsh intends to pursue a “Statute of Anne” effort to recover lost wages. According to Boston.com, the British law, enacted in 1710, aims to protect gamblers from financial ruin by allowing them to sue to recover money resulting from unlawful gambling.
Meanwhile, the state's lawsuit against Kalshi returns to the Supreme Judicial Court on Monday, May 4, when oral arguments on the February injunction will be heard, according to Boston.com.
