Massachusetts Raises Fresh Concerns over Prediction Markets

Massachusetts Gaming Commission chair Jordan Maynard revealed that the regulator regularly receives complaints from consumers who believe prediction markets fall under state law. The complaints highlight growing confusion about which authorities are responsible for protecting customers using platforms like Kalshi. This confusion could also make it difficult for consumers to get meaningful protection when something goes wrong. Prediction Platforms May Lack Critical Safeguards Maynard shared his concerns in written testimony he submitted on November 11 to a US House subcommittee. He said consumers regularly contact the commission for clarification of betting rules, help with disputes, and support on responsible gambling. However, the state regulator lacks the authority to provide those services for prediction market platforms. Our office receives regular reports from consumers who assume that the Massachusetts Gaming Commission regulates sports prediction markets. Jordan Maynard, Massachusetts Gaming Commission chair That distinction is central to a growing dispute between gambling regulators and companies offering contracts on sports events. Prediction market operators argue that say their products are covered under federal commodities law and are overseen by the Commodity Futures Trading Commission (CFTC). Meanwhile, state authorities counter that contracts based on sporting outcomes constitute sports betting and should be subject to local gambling laws. According to Maynard, operators offering sports prediction contracts often lack the consumer protections associated with regulated sportsbooks. The state has strict rules to prevent people under 21 from gambling, regulate advertising, and protect student-athletes. Massachusetts has also banned proposition bets on individual college athletes. However, prediction market platforms are not obligated to follow the same requirements. Federal-Level Regulation Could Cause Issues Massachusetts has already taken legal action against Kalshi. In September 2025, the state’s attorney general sued to stop the company from offering sports event contracts that allegedly violated the state’s sports wagering law. A state court issued an injunction, but an appeals court later suspended the restriction while Kalshi appeals. As a result, the company’s sports contracts remain available in Massachusetts. Maynard also questioned the CFTC’s ability to deal with consumer complaints and other issues centered on prediction markets. He argued that while the federal authority claimed to regulate the sector, it lacked the manpower and resources to provide consumer assistance across the entire USA. Maynard noted that the state regulator regularly received such complaints, but could not intervene. The CFTC… is simply not equipped to or interested in regulating nationwide consumer sports betting markets. Jordan Maynard, Massachusetts Gaming Commission chair While the Massachusetts regulator has directed consumer complaints toward the CFTC, it has not received confirmation of any concrete results. This leaves questions about what happens when consumers encounter issues outside state regulator authority. As prediction markers continue to expand across the USA, this gap in regulatory responsibility could cause significant issues.