Overview
- Suffolk County Superior Court set a preliminary injunction to halt Kalshi’s sports-related markets in the state, with proposed terms due Wednesday and a response due Friday before the order issues.
- Judge Christopher Barry-Smith rejected Kalshi’s claim that CFTC oversight preempts state gambling law, finding state regulation can operate in harmony with federal rules.
- The ruling cites consumer protection concerns, noting Kalshi serves users 18+ while Massachusetts-licensed sportsbooks are restricted to those 21 and older.
- Sports wagers account for over 80% of Kalshi’s activity—about $26 billion in volume in just over a year—placing a large share of its business at risk.
- Coverage describes the order as the first of its kind against a U.S. prediction market and suggests it could prompt further actions, with Kalshi planning an appeal and partners reported to be preparing geofencing for Massachusetts users.