A Massachusetts judge has issued an order allowing the state to block prediction market operator Kalshi from offering sports event contracts to customers in the Commonwealth. The ruling was issued by Judge Christopher Barry-Smith following a lawsuit filed by Attorney General Andrea Joy Campbell.
The judge ruled that Kalshi cannot offer sports-related contracts without obtaining the required license under Massachusetts sports betting law. The state has been directed to submit a proposed injunction, with a follow-up hearing scheduled later in the week.
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Attorney General Campbell said the decision reinforces that companies offering sports-related wagering activity must comply with Massachusetts gaming laws. The ruling will prohibit Kalshi from accepting new sports event contracts from Massachusetts users unless the company becomes properly licensed.
The Massachusetts Gaming Commission also acknowledged the decision, stating that regulated Massachusetts sports betting apps remain the only approved option for legal sports betting in the state.
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Kalshi has faced similar regulatory challenges in multiple states, including cease-and-desist orders in Arizona, Illinois, Montana, and Ohio, along with ongoing litigation in New Jersey. Massachusetts officials argue Kalshi’s sports event contracts function similarly to traditional sports betting, which is regulated by the state.
The case marks the first court ruling allowing a state to directly restrict sports event prediction markets under existing sports wagering laws.
