Overview
- Judge Christopher Barry-Smith granted a preliminary injunction permitting Massachusetts regulators to bar Kalshi’s sports-related markets, with compliance expected as soon as Friday.
- The ruling says Kalshi’s contracts are offered in a manner that mirrors other digital gambling experiences under state law.
- Kalshi has argued its products are federally regulated event contracts rather than state-regulated sports bets.
- Sports markets represent over 80% of Kalshi’s activity, with roughly $26 billion in trading volume in just over a year, according to Dune data cited in the filings.
- Legal observers say the decision could encourage similar actions in other jurisdictions, as Portugal and Hungary recently moved to ban rival platform Polymarket.