Massachusetts Judge Blocks Kalshi Sports Offerings

A Massachusetts judge ruled Tuesday that the prediction markets platform Kalshi must halt its sports-related offerings to state residents, marking the first such preliminary injunction against a company of its kind in the United States.

Suffolk County Superior Court Judge Christopher Barry-Smith in Boston granted the request from Attorney General Andrea Joy Campbell for a temporary order prohibiting Kalshi from allowing users in Massachusetts to place bets on sporting events without a license from the state's gaming regulators. The decision came in response to a September lawsuit filed by Campbell's office, which accused the New York-based company of operating illegal sports wagering under the guise of event contracts. The judge plans to finalize the injunction following a hearing on Friday and may pause enforcement to allow for an appeal.

"There is no real question that licensure, and the consequent oversight, of sports wagering operations in the state serves both public health and safety, and the Commonwealth's financial interest," Barry-Smith wrote in his ruling. He rejected Kalshi's argument that its platform falls solely under federal oversight by the Commodity Futures...