Published on: January 20, 2026, 07:45h.
Updated on: January 20, 2026, 07:45h.
- Judge endorses attorney general’s petition for a temporary halt against Kalshi.
- The halt is set to take effect on Jan. 23.
- Kalshi is likely to contest the ruling, but if unsuccessful, it will be prohibited from providing sports event contracts in Massachusetts.
Kalshi faces the potential loss of its ability to provide sports event contracts in Massachusetts following a judge’s approval of a temporary halt against the prediction platform.
Suffolk County Superior Court Judge Christopher Barry-Smith granted the injunction earlier today after a request from Massachusetts Attorney General Andrea Campbell (D), stemming from a lawsuit filed in September 2025 against the derivatives exchange. Campbell previously argued that Kalshi is functioning as an unlicensed, unregulated betting entity.
Mandating Kalshi to obtain a license for offering its sports-related event contracts in Massachusetts is in the public’s best interests,” Judge Barry-Smith stated in his reasoning.
The judge emphasized that the court is moving towards prohibiting Kalshi “from providing sports-related event contracts without the necessary license under the Sports Wagering Law.” The injunction will be effective on Friday, and Kalshi may appeal the decision.
Prediction Markets Facing Legal Challenges
While sports event contracts have brought attention to prediction markets, they have also triggered a wave of legal actions against companies like Crypto.com, Kalshi, and Polymarket.
At the state level, jurisdictions with legal sports betting have been particularly proactive in pursuing litigation against prediction market operators. These states assert that sports event contracts are essentially sports wagers disguised by another name and should thus be regulated similarly to conventional sportsbook operations.
Essentially, states are adhering to the principle of “if it looks like a duck and quacks like a duck, it is a duck,” and their arguments are proving to be effective. Following the recent injunction against Kalshi, the company and its competitors Crypto.com and Polymarket have experienced a losing streak in six consecutive state-level lawsuits in Massachusetts, Maryland, and Nevada.
In his ruling, Barry-Smith referenced the “duck” analogy, noting that Kalshi provides parlays (referred to as combos in prediction markets) and player proposition bets, indicating that the platform “mirrors other digital gambling experiences” and “utilizes gambling terminology.”
Kalshi Faces Competition and Legal Complications
Kalshi is not the only prediction market facing legal challenges. Its competitor Polymarket is currently under scrutiny following a civil enforcement action initiated on January 16 by the Nevada Gaming Control Board (NGCB).
“Polymarket operates a derivatives exchange and prediction market offering event contracts for sale,” stated the Nevada gaming regulator. “These products are available for purchase on Polymarket’s mobile application and are accessible to individuals in Nevada. The Board interprets the offering of sports event contracts, or certain other event contracts, as a form of wagering activity under NRS 463.0193 and 463.01962, thus requiring licensing for entities that provide such event contracts.”
This marks a challenging January for Polymarket, as Portugal issued a cease-and-desist order against the platform ahead of national elections. Additionally, last week, Ukraine mandated internet service providers to block access to the prediction market’s website.