Massachusetts Judge Blocks Kalshi Sports Betting With Injunction
A Massachusetts judge moved to prohibit prediction markets platform Kalshi from offering sports wagers to residents, with a preliminary injunction expected, according to a Tuesday Reuters report.
Reuters reported that Suffolk County Superior Court Judge Christopher Barry-Smith said he would issue a preliminary injunction preventing Kalshi from providing sports betting in Massachusetts without the appropriate gaming license.
The decision follows a lawsuit filed in September by Massachusetts Attorney General Andrea Joy Campbell alleging the platform facilitated “illegal and unsafe sports wagering.” According to Reuters, the injunction was issued at Campbell’s request.
Kalshi is among the largest prediction markets operators, alongside Polymarket, offering event-based contracts spanning topics from U.S. politics to outcomes of European sporting events.
US states and federal lawmakers increase scrutiny of prediction markets
The Massachusetts case is one of several actions by individual U.S. states and lawmakers targeting largely unregulated prediction markets platforms. While Kalshi secured a legal victory against the U.S. Commodity Futures Trading Commission in 2024 over election-related contracts, the sector continues to draw scrutiny from policymakers.
In January, a Polymarket user reportedly earned more than $400,000 from a contract tied to the removal of then-Venezuelan President Nicolás Maduro by U.S. forces. The wager led to allegations of insider trading and conflicts of interest and prompted calls from lawmakers to clarify who should be permitted to participate in political prediction markets.
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