A Massachusetts judge ruled that prediction-markets platform Kalshi cannot allow state residents to place sports bets through its online service without a proper gaming license, granting a preliminary injunction sought by the state’s attorney general.
Suffolk County Superior Court Judge Christopher Barry-Smith agreed on Tuesday to issue the injunction at the request of Massachusetts Attorney General Andrea Joy Campbell, who filed a lawsuit in September alleging that Kalshi’s “event contracts” on sporting outcomes operate as unlicensed sports wagering under state law, which requires a license from the Massachusetts Gaming Commission.
Kalshi’s platform, which allows users to take positions on sporting event outcomes — including moneyline, spread, and over-under formats — began offering sports contracts nationwide in January 2025 and has seen them become a significant portion of its trading volume. The judge scheduled a hearing to finalize how the injunction will be implemented and whether it will be stayed during an appeal. Kalshi has indicated plans to challenge the order.
Massachusetts is the first U.S. state to secure a court order halting Kalshi’s sports-related offerings, though the company faces similar legal challenges in multiple other jurisdictions that also contend its sports contracts violate local gaming laws. Prior legal battles have ranged from federal disputes over jurisdiction to state actions in other markets.
Source: Reuters, state court filings
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