Kalshi Can’t Offer Sports Prediction Markets in Massachusetts, Rules Court
Posted on: January 20, 2026, 07:45h.
Last updated on: January 20, 2026, 07:45h.
- Judge approves attorney general’s request for a preliminary injunction against Kalshi.
- Injunction goes into effect on Jan. 23.
- Kalshi expected to appeal, but unless it wins on appeal, it’s barred from offering sports event contracts in Massachusetts.
Kalshi is on the brink of losing its ability to offer sports event contracts in Massachusetts after a judge granted the state a preliminary injunction against the prediction operator.
Suffolk County Superior Court Judge Christopher Barry-Smith granted the injunction earlier today after Massachusetts Attorney General Andrea Campbell (D) requested in a September 2025 suit against the derivatives exchange. Campbell previously argued Kalshi is operating what amounts to be an unlicensed, unregulated wagering enterprise.
Requiring Kalshi to be licensed to offer its sports-related event contracts in Massachusetts serves the public interest,” wrote Barry-Smith in his opinion.
The judge adds the court is moving toward barring Kalshi “from offering sports-related event contracts in the absence of the required license under the Sports Wagering Law.” The injunction goes into effect on Friday and Kalshi is eligible to appeal it.
Prediction Markets on Losing Streaks
Sports event contracts have brought prediction markets into limelight, but those derivatives have also result in flurry of legal activity against companies such as Crypto.com, Kalshi, and Polymarket.
At the state level, it’s been jurisdictions in which sports betting is legal that have been most active in pursuing litigation against prediction market operators. States contend sports event contracts are essentially sports bets under a different name and as such, the companies offering those derivatives should be licensed on par with traditional sportsbook operators.
In essence, states are leaning into “if it walks like a duck and quacks like a duck, it is a duck” precedent and they’re proving successful in doing so. With the aforementioned injunction against Kalshi, that company and rivals Crypto.com and Polymarket have lost six consecutive state-level cases in Massachusetts, Maryland, and Nevada.
Barry-Smith leaned into the “duck” logic in his ruling, pointing out Kalshi offers parlays (called combos in the prediction markets space) and player proposition bets and that the platform “mirrors other digital gambling experiences” and “borrows gambling terminology.”
Kalshi not Only Prediction Market Facing Legal Woes
Kalshi isn’t the only prediction market racking up “L’s.” Rival Polymarket is dealing with a civil enforcement filed on Jan. 16 by the Nevada Gaming Control Board (NGCB).
“Polymarket operates a derivatives exchange and prediction market where it offers event contracts for Sale,” according to the Nevada regulator. “These products are offered for sale on Polymarket’s mobile app and are made available to people in Nevada. The Board considers offering sports event contracts, or certain other events contracts, to constitute wagering activity under NRS 463.0193 and 463.01962 and, therefore, entities offering such event contracts must be licensed.”
That’s part of a rough January in which Portugal issued a cease and desist order against Polymarket ahead of national elections there. Last week, Ukraine ordered internet service providers operating there to block access to the prediction market’s website.
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