Massachusetts Judge Blocks Kalshi from Offering Sports Betting Without License

14 hour ago 6 sources neutral

Key takeaways:

  • The injunction signals heightened regulatory scrutiny on crypto-adjacent prediction markets, potentially impacting platforms like Polymarket.
  • Kalshi's legal battles highlight the jurisdictional risks for decentralized finance applications operating in regulated spaces.
  • Investors should monitor similar enforcement actions as they could affect market sentiment towards prediction market tokens.

A Massachusetts judge has issued a preliminary injunction against the prediction markets platform Kalshi, barring it from offering sports betting to state residents without the required gaming license. The ruling, delivered by Suffolk County Superior Court Judge Christopher Barry-Smith on Tuesday, January 20, 2026, came at the request of Massachusetts Attorney General Andrea Joy Campbell.

The legal action stems from a lawsuit filed by Campbell in September 2025, which alleged that Kalshi's "event contracts" on sporting outcomes constituted illegal and unlicensed sports wagering under state law. These contracts, which include moneyline, spread, and over-under formats, were launched nationwide in January 2025 and had grown to become a significant part of Kalshi's trading volume.

The judge has scheduled a hearing to finalize the details of the injunction's implementation and to determine if it will be stayed pending an appeal. Kalshi has indicated its intention to challenge the court order. This marks the first time a U.S. state has secured a court order to halt Kalshi's sports-related offerings, though the company faces similar legal challenges in multiple other jurisdictions.

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