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Kalshi Controversy Doesn’t Sway Massachusetts Gaming Commission

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The Massachusetts Gaming Commission (MGC) has voted to keep its membership in the National Council on Problem Gambling (NCPG) — for now — even as other state regulators pull out over a controversial $2 million donation from prediction-market operator Kalshi.

The five-member MGC discussed (at 1:12:50 of this video) whether to follow Michigan, Ohio, and Nevada in resigning from the NCPG after the council accepted Kalshi’s two-year commitment and created a new “Financial Services & Trading” membership category.

Commissioners ultimately voted unanimously to remain members, citing continued support for the NCPG’s core mission on problem-gambling awareness, education, and research. MGC Chairman Jordan Maynard signaled the decision could be revisited at renewal time, saying: “When it comes up for renewal, I’m sure we’ll have another conversation.”

The decision also comes during a growing debate over Historical Horse Racing (HHR) machines. Some believe they should operate under a different legal structure in The Bay State.

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Why Other Regulators Left: The Kalshi Donation Controversy

In May, the NCPG announced Kalshi’s $2 million pledge to fund a “trader health and safety” initiative, including education and research on risky behaviors tied to prediction markets. Kalshi, a CFTC-regulated platform offering event contracts (including on sports outcomes), became the first member of the new subcategory.

Critics — including several state regulators and lawmakers — argue the partnership blurs the line between regulated gambling and federally regulated prediction markets, risks the appearance of an endorsement, and could undermine state enforcement efforts against Kalshi.

  • Michigan: The Michigan Gaming Control Board withdrew in July 2026, saying the affiliation conflicted with responsible-gaming principles and noting Kalshi’s alleged unlicensed sports gambling in the state.
  • Nevada: The Nevada Council on Problem Gambling severed ties in August 2026, emphasizing institutional independence and differing approaches to emerging risks. The Ninth Circuit court also backed The Battle Born State in its sports prediction markets fight with Kalshi.
  • Ohio: State officials have been referenced in similar discussions of departures from the NCPG.

The NCPG has said the initiative is not an endorsement of Kalshi or prediction markets and that it remains neutral on the legality of specific products.

Massachusetts Gaming CommissionStays in National Council on Problem Gambling Amid Kalshi Controversy
In May, Kalshi announced a $2 million, two-year commitment to the NCPG. Image Credit: Kalshi

Massachusetts’ Stance on Kalshi

Massachusetts has taken one of the toughest stances against Kalshi’s sports-related event contracts. The state Attorney General sued Kalshi, arguing it offers unlawful sports wagering without an MGC license.

A Suffolk Superior Court judge issued a preliminary injunction in early 2026 blocking Kalshi from accepting sports wagers from Massachusetts residents.

That injunction was stayed pending appeal, and the case is now before the Massachusetts Supreme Judicial Court, which heard oral arguments in spring 2026 and is expected to rule soon.

The MGC has also warned its licensed sportsbooks against partnering with prediction markets in ways that could violate state rules.

At the same time, the commission emphasizes responsible gaming: it funds research, supports player-protection tools (such as self-exclusion and PlayMyWay/GameSense), and directs public-health money from gaming revenues to prevention and treatment.

What the NCPG Does — And Why Membership Matters

The National Council on Problem Gambling is a longstanding national nonprofit focused on awareness, education, advocacy, research, and support for people affected by problem gambling. It operates the national helpline (often referenced as 1-800-MY-RESET) and works with state affiliates, treatment providers, and industry stakeholders.

The NCPG has long accepted corporate funding from traditional gaming companies while maintaining that donations and memberships do not equal endorsement or control over its policy positions. The Kalshi arrangement, however, has triggered a legitimacy debate among regulators who see prediction-market sports contracts as unlicensed betting.

This announcement by the MGC comes in the wake of lawmakers' decision to pause the pursuit of online casinos. Although real-money online casinos remain illegal in Massachusetts, you can legally play at sweepstakes casinos and social casinos.

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What Happens Next in Massachusetts?

For Massachusetts residents, the MGC’s decision keeps the state aligned with the NCPG’s broader harm-reduction work while the legal fight over prediction markets plays out. For operators, it signals that the commission still values the council’s resources on responsible gaming, even as it aggressively enforces state wagering laws against Kalshi.

If the Supreme Judicial Court rules against Kalshi, or if more states exit the NCPG, the MGC could revisit its membership at renewal — exactly the “wait-and-see” posture Chairman Maynard described.

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