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Massachusetts Seeks Court Order to Halt Kalshi’s Sports Prediction Markets

The case tests whether sports event contracts fall under state gambling rules or federal derivatives oversight.

Overview

  • Attorney General Andrea Joy Campbell will ask a Suffolk County judge for a preliminary injunction blocking Kalshi from offering sports markets in Massachusetts, alleging an unlicensed gambling operation.
  • A Nevada federal judge recently dissolved an injunction shielding Kalshi and ruled its prebuilt parlays and player‑prop‑style markets are not swaps under the Commodity Exchange Act.
  • Kalshi has filed an emergency motion to stay the Nevada ruling pending appeal, and Nevada authorities said they would oppose a stay though they agreed to pause enforcement during the court’s consideration.
  • Connecticut issued cease‑and‑desist orders to Kalshi, Robinhood, and Crypto.com, alleging unlicensed online sports gambling and violations such as failing to restrict wagering to those 21 or older.
  • Federal courts have split on state enforcement, with a Maryland judge siding with regulators and a New Jersey judge blocking enforcement, as competitors like Polymarket and Fanatics expand sports-focused offerings.