A court order that would temporarily stop prediction market Kalshi from offering sports-event contracts in Massachusetts has been put on hold. The development comes as state officials seek to block the company from operating in the jurisdiction, arguing that companies offering wagers on sporting outcomes must hold a state sports betting license.
Massachusetts Attorney General Andrea Campbell had previously filed a lawsuit in September against New York-based Kalshi. Campbell alleged that Kalshi operates an online “prediction market” that allows users to take positions on the outcomes of sporting events without being licensed for sports betting in Massachusetts.
Prediction markets operate in a format similar to financial futures markets. Participants buy and sell event contracts tied to specific outcomes, with payouts determined by whether those events occur.
Kalshi argued in court that it falls outside state jurisdiction because it is regulated at the federal level. The company contended that federal law overrides state law under the supremacy clause of the US Constitution.
Judge Christopher K. Barry-Smith of Suffolk Superior Court rejected that argument last week. He said Congress did not intend to prevent states from regulating sports betting. Based on that conclusion, Barry-Smith ruled in favor of granting a preliminary injunction that would bar Kalshi from conducting business in Massachusetts while the case proceeds.
However, Barry-Smith delayed the implementation of the injunction to allow both parties time to confer and possibly agree on draft wording for the order. Drafts are due by February 4.
The underlying litigation could continue for months or longer.
The judge also said he will consider Kalshi’s emergency request for a stay of the injunction while the company pursues an appeal.
Following the ruling, Campbell described the decision as a win for state gaming oversight. “The court has made clear that any company that wants to be in the sports gaming business in Massachusetts must play by our rules — no exceptions,” she said in a statement.
The case places attention on how state regulators approach sports-related contracts offered through platforms that operate outside traditional sports-betting licensing structures.
Original article: https://www.yogonet.com/international/news/2026/01/29/117357-judge-postpones-enforcement-of-sports-betting-injunction-against-kalshi-in-massachusetts
