Massachusetts Judge Blocks Kalshi's Sports Betting Amid Legal Battle

A Massachusetts Superior Court judge has ruled that Kalshi, a prediction-markets operator, cannot let state residents place sports bets on its platform without a license. The decision follows a legal challenge by the state's attorney general, citing regulatory non-compliance. Kalshi plans to appeal the injunction.

A Massachusetts Superior Court has temporarily blocked prediction-markets operator Kalshi from offering sports betting to residents, citing regulatory violations. Attorney General Andrea Joy Campbell argued the New York-based company was operating illegally without a license.

Judge Christopher Barry-Smith acknowledged that Kalshi understood the legal risks of its business model but proceeded in states with strict licensing requirements. A preliminary injunction will minimize disruptions to Kalshi's operations while enforcing compliance with Massachusetts law.

Kalshi intends to appeal the decision, but the company faces similar legal challenges in other states. The platform offers event contracts on sports, politics, and economy predictions, attracting scrutiny for targeting young consumers without age restrictions.

(With inputs from agencies.)