A Massachusetts judge has denied prediction-market operator Kalshi's request to keep offering sports-events contracts while appealing an injunction that will ban such operations without a state license in 30 days. The ruling underscores the ongoing conflict between state gaming regulators and federal oversight of prediction markets. Kalshi plans to continue fighting the decision.
On February 6, 2026, Suffolk County Superior Court Judge Christopher Barry-Smith in Boston rejected Kalshi's bid to stay a preliminary injunction that prohibits the New York-based company from offering sports-events contracts in Massachusetts without a state gaming license. The injunction, which Kalshi must comply with within 30 days, stems from a lawsuit by Massachusetts Attorney General Andrea Joy Campbell, who argued that Kalshi's platform constitutes unlicensed sports wagering.
Kalshi, licensed by the U.S. Commodity Futures Trading Commission (CFTC), maintains that federal law governs its exchange, classifying the contracts as exchange-traded swaps under CFTC jurisdiction. The company offers users the ability to bet on sports outcomes, such as match results, which state regulators view as violating gambling laws, including restrictions on betting by those under 21. In a statement, Kalshi affirmed: “We will stay the course and fight for that belief.”
Judge Barry-Smith ruled that the potential financial impact on Kalshi does not outweigh the state's interest in regulating sports gaming operators. He noted that Kalshi adopted its business model "with eyes wide open," aware of the risk that states might reject its arguments for operating nationwide sports betting under CFTC rules alone. Campbell welcomed the decision, stating it “affirms Massachusetts’ right to enforce our gambling laws and hold all operators who wish to offer sports wagers in our state accountable.”
This case is part of a broader national tension between state gaming authorities and prediction-market firms. Just a day earlier, on February 5, a Nevada judge temporarily blocked Coinbase from similar activities, following an order against Polymarket. These developments highlight regulators' efforts to curb what they see as unregulated wagering on sports events, potentially reshaping the landscape for CFTC-approved platforms like Kalshi.
