Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioA judge in Massachusetts has ruled against Kalshi, potentially prohibiting the platform from offering new sports markets by the end of this week. The judgment could be a turning point in legal cases and was quickly used by New York to strengthen its battle against the prediction market operator.
Judge Christopher Barry-Smith issued the judgment, highlighted by gaming lawyer Daniel Wallach on X, “The Commonwealth is entitled to a preliminary injunction prohibiting Kalshi from offering sport-related event contracts in the absence of the required license under the Sports Wagering Law.”
In the same order, he denied Kalshi’s motion to dismiss. The company will undoubtedly attempt to delay any definitive action against its operations and appeal against the decision, which is expected to be made final by Friday.
The ruling itself is not a definitive judgment, but in theory, it should stop Kalshi from offering new sports markets while the case is ongoing. In practice, Kalshi will likely use all available resources in order to continue operations as normal.
Massachusetts Attorney General Joy Campbell filed a lawsuit against Kalshi in September last year, claiming the platform is operating an unlicensed sports betting platform.
New York Uses Ruling to Strengthen Case Against Kalshi
The judgment is already being used in other legal cases against Kalshi. New York’s Assistant Attorney General Zachary Manley wrote to inform the court of the ruling, in the hope it will strengthen the state’s case against Kalshi.
Kalshi filed a counter-lawsuit in New York after the state’s gambling regulator sent the company a cease-and-desist letter in October. The New York State Gaming Commission (NYSGC) agreed to allow Kalshi to continue offering its sports markets in the state while judges deliberate on whether to grant its motion for an injunction against the cease-and-desist order.
In another development, Tennessee‘s gambling regulator filed its opposition to Kalshi’s motion for a preliminary injunction on Tuesday. The state said Kalshi’s harm is “self-inflicted” and that it comes to court with “unclean hands” by self-certifying sports event contracts in violation of the Commodity Exchange Act (CEA), which prohibits contracts on gaming.
Kalshi filed a counter-lawsuit in Tennessee aiming to prevent the state from enforcing its cease-and-desist order. In Massachusetts, it was the state that filed a lawsuit against Kalshi, meaning an injunction would be against Kalshi.
In New York and Tennessee (as well as several other states), Kalshi is seeking injunctions to prevent regulators from enforcing cease-and-desist orders.
Other Legal Cases Against Kalshi
The list of legal cases against Kalshi is extensive and growing. It has filed lawsuits in seven states where gambling regulators issued the platform a cease-and-desist letter. The first dates back to March last year, but there has been no definitive ruling as yet.
It faces an additional 11 lawsuits brought on behalf of users, seeking to reclaim losses on the platform. The lawsuits use a range of arguments, but generally claim that the company is running an unlicensed sports betting operation.
A group of self-confessed gambling addicts submitted the latest lawsuit in New York, alleging the company does not offer the same protections as licensed sportsbooks and is a danger to problem gamblers.
Kalshi continues to argue it is operating within federal law, beyond the oversight of state regulators, and has vowed to fight against all legal challenges. The cases roll on.
