Massachusetts won a significant court battle against prediction market platform Kalshi that gives the Bay State the ability to prohibit sports event contracts from being offered there.
Key Takeaways
- Kalshi’s motion to dismiss the Bay State’s request for a preliminary injunction was denied.
- The judge gives the Commonwealth until Wednesday to propose the preliminary injunction.
- The court order will take effect on Friday.
A judge ruled in favor of the Commonwealth on Tuesday, allowing a request for a preliminary injunction against Kalshi, which also had its motion to dismiss the request denied.
“The Commonwealth is entitled to a preliminary injunction prohibiting Kalshi from offering sport-related event contracts in the absence of the required license under the Sports Wagering Law,” Judge Christopher Barry-Smith wrote.
NEW: My office just secured a court order that will block Kalshi from offering unlawful sports wagers in Massachusetts while our case continues in court.
— AG Andrea Joy Campbell (@MassAGO) January 20, 2026
If you want to operate a sports betting business here in Massachusetts, you have to play by our rules. Period. pic.twitter.com/IsSU1b5VGZ
Massachusetts was ordered to propose a preliminary injunction by Wednesday at 4 p.m. ET because Judge Barry-Smith said the two sides didn’t resolve details of the injunction, including “how to prohibit new contracts without impacting already existing contracts.” The injunction would then be put in place at a hearing on Friday, making Massachusetts the first state to receive that type of court order against a prediction platform.
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Operating without a license
Judge Barry-Smith sided with Massachusetts’ primary argument that Kalshi must be licensed by the state’s regulatory body to offer sports contracts, which “will serve the public interest.”
In his denial of Kalshi’s motion, the judge wrote that the prediction platform’s request was “predicated on its preemption argument, which fails.” Barry-Smith didn’t agree that Kalshi not operating in Massachusetts would be a hardship or harmful to its business.
The judge also didn’t buy the argument that state regulators don’t have jurisdiction in this case, siding with the overturning of PASPA, which was predicated on state’s legalizing and running sports betting.
This has been one of Kalshi’s most significant arguments, that it’s regulated by the Commodity Futures Trading Commission, therefore allowing it to offer contracts in all 50 U.S. states. It didn’t hold up with this Massachusetts judge.
Setting a precedent?
In its case against the prediction market platform, Massachusetts called Kalshi’s sports event contracts “sports betting” and pointed to sportsbook-like offerings like spreads, totals, and parlays.
The Bay State’s Attorney General filed a lawsuit against Kalshi in September 2025, claiming the company is in the wagering business. A judge ruled that the case against Kalshi must be heard in the state, not by a federal judge.
The prediction platform has been involved in legal battles with other states, including Nevada, Ohio, and New Jersey. This latest decision could set a precedent and be used by other states. It was filed as a supplemental authority by the New York Gaming Commission in the state's own legal battle with Kalshi.
Kalshi has until Friday at 10 a.m. to submit a response to Massachusetts' proposed order. If a hearing takes place, it will be scheduled for Friday at 12 p.m., during which a motion to stay may be raised.
