Massachusetts Court Blocks Kalshi from Offering Sports Wagers Without State Approval
A Massachusetts court is moving to halt unlicensed sports wagering activity after Attorney General Andrea Joy Campbell secured a preliminary injunction against Kalshi, an online prediction market operator. The order prevents Kalshi from accepting online sports wagers and related event contracts from customers in Massachusetts unless and until the company complies with state sports gaming laws, including obtaining licensure from the Massachusetts Gaming Commission.
The injunction follows a lawsuit filed by the Attorney General’s Office in September 2025, which alleged that Kalshi was offering sports wagering products under the label of “event contracts” without the required regulatory approval. In addition to granting the injunction, the court denied Kalshi’s motion to dismiss the case, allowing the Attorney General’s legal challenge to proceed.
According to the Attorney General’s Office, the ruling makes clear that companies seeking to operate in the Massachusetts sports gaming market must adhere to the same regulatory framework as licensed sportsbooks. The court’s decision signals that alternative product structures or branding will not exempt operators from compliance with state gambling laws.
Event contracts treated as sports wagering under state law
The lawsuit centres on Kalshi’s use of an online exchange model that allows users to buy and sell contracts tied to the outcomes of sporting events. These contracts include products that mirror traditional sports betting formats, such as moneyline-style outcomes, point spreads, and over-under markets.
State regulators argue that despite being described as “prediction” or “event” contracts, the products function in practice as sports wagers. As a result, Massachusetts law requires any operator offering them to hold a valid sports wagering licence issued by the Massachusetts Gaming Commission. Kalshi has neither applied for nor received such a licence.
The Attorney General’s Office further noted that Kalshi actively promotes its sports-related offerings through television, social media, and online marketing channels, increasing accessibility to consumers without the safeguards required of licensed operators.
Public health and consumer protection focus
Attorney General Campbell framed the court’s decision as a significant step toward protecting public health and reinforcing the integrity of the state’s gambling framework. Her office has repeatedly raised concerns about the risks associated with unregulated gambling, particularly its impact on young people and vulnerable consumers.
In recent years, the Attorney General has taken multiple enforcement actions aimed at curbing illegal or unlicensed gambling activity. These include issuing cease-and-desist letters to online gaming operators in 2025 and launching the Youth Sports Betting Safety Coalition in 2024, a public-private initiative designed to raise awareness of gambling risks and legal requirements.
Implications for prediction markets
The injunction against Kalshi highlights the growing regulatory scrutiny facing prediction market platforms as they expand into sports-related products. While such platforms often argue that federal law governs derivatives and event contracts, Massachusetts authorities are asserting that state gambling laws still apply when products resemble traditional sports betting.
The case is likely to be closely watched by regulators and operators nationwide, as states continue to clarify how prediction markets fit within existing gambling frameworks. For Massachusetts, the ruling reinforces a clear message: participation in the sports gaming market requires full compliance with state licensing, consumer protection, and regulatory standards.
