Massachusetts Court Orders Kalshi to Limit Sports Betting Offers Within 30 Days
Kalshi Faces Tight Deadline to Comply with Massachusetts Gambling Regulations
Kalshi, a platform specializing in event contracts, is currently under pressure from Massachusetts regulators. A Superior Court judge has issued a ruling that requires the company to take swift action to align with the state’s gambling laws. This case is pivotal in the broader debate over whether federally regulated event contracts can continue to provide sports-related markets in states that classify such activities as unlicensed gambling.
Judge Rejects Kalshi’s Request for Extended Grace Period
Judge Christopher K. Barry-Smith recently mandated that Kalshi must restrict access to its sports contracts for residents of Massachusetts within 30 days. Kalshi’s proposal for a 90-day extension was denied, highlighting the court’s skepticism about the platform’s claim that its services fall outside state gambling regulations.
This legal battle follows a January 20 decision that prohibited Kalshi from offering sports prediction markets in Massachusetts without obtaining a state license. Despite Kalshi’s challenge, the court supported the state’s position by granting a preliminary injunction. As a result, Kalshi is now required to activate geofencing technology to prevent Massachusetts users from placing new sports bets.
The court’s latest order permits existing contracts to remain open so users can close out their positions. However, any attempts to change these wagers will be prohibited. This strikes a balance intended to reduce user disruption while affirming the state’s view that these sports-related contracts constitute gambling under Massachusetts law.
Legal Battles Continue; Platform’s Marketing Unrestricted
Though faced with restrictions on its sports markets, Kalshi retains the ability to promote its other diverse offerings, which include contracts based on economic and political events. Judge Barry-Smith declined to limit the company’s overall marketing efforts, effectively drawing a clear line around just the sports betting markets rather than shutting down Kalshi entirely.
Moving forward, Kalshi and Massachusetts officials are expected to collaborate on a proposed injunction to be submitted by February 4, 2026. Should they fail to reach a consensus, the court will consider competing proposals from both sides. A decision on Kalshi’s emergency request to pause the injunction will also be made during this time.
Wider Legal Context and Ongoing Litigation
Kalshi is currently embroiled in nineteen federal lawsuits across the United States. Eight of these suits, initiated by tribal entities and state regulators, allege that Kalshi is operating unlicensed gambling. In response, Kalshi has filed six lawsuits against local gaming authorities, accusing them of exceeding their regulatory powers. Additional lawsuits have been filed by individuals who claim that the platform contributes to gambling addiction, adding to the company’s legal challenges.
