Massachusetts To Block Kalshi Sports Betting

• Massachusetts has won the legal right to block the prediction market platform Kalshi from facilitating stock-market-style sports betting.
• The state sued Kalshi in September, alleging unlicensed and illegal gambling.
• On Jan. 20, 2026, a court granted the state an injunction that gives the state the power to force Kalshi to shut down at least part of its platform within Massachusetts borders.
• Massachusetts would be the first state to force Kalshi to cease sports betting.
• The Commodity Futures Trading Commission (CFTC) controversially certifies Kalshi.
• In advertisements, Kalshi says it offers sports betting in all 50 states. However, it doesn’t have state-level licenses to operate sports betting.

When Will Kalshi Become Illegal in MA?

Kalshi’s other gambling markets, such as politics, could remain operational in Massachusetts. Meanwhile, sports markets will no longer be available.

The sports markets could go dark as early as Friday, Jan. 23, 2026. However, the shutdown process could be delayed. Some residents have pending sports bets.

The platform could miss out on a significant revenue opportunity if the New England Patriots advance to the Super Bowl.

Could Kalshi appeal and delay or reverse the enforcement? Possibly, according to industry attorney Andrew Kim.

“If Kalshi notices an appeal to the Appeals Court, this could go straight to the Supreme Judicial Court. The SJC has the power to transfer appeals ‘upstairs,’ and it sometimes does so with interesting cases presenting novel issues (like this one),” Kim wrote on X. “Kalshi could also apply for direct appellate review by the SJC. The SJC grants about ~40% of such applications.”

MA Court Ruling on Kalshi

Here is crux of the ruling:

MEMORANDUM & ORDER:

For the forgoing reasons, the Commonwealth’s motion for a preliminary injunction is ALLOWED. Kalshi’s motion to dismiss is DENIED. 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. At the hearing both parties discussed, but did not resolve, certain details of the Commonwealth’s requested injunction, including how to prohibit new contracts without impacting already existing contracts. 

For that reason, I will enter a preliminary injunction consistent with this decision on the following schedule: i) not later than January 21, 2026 at 4:00 p.m the Commonwealth shall submit a proposed preliminary injunction consistent with this decision; ii) not later than January 23, 2026 at 10:00 a.m, Kalshi may submit a response to the Commonwealth’s proposed order; iii) if either side requests to be heard or if I determine a hearing is necessary, a hearing will take place on Friday, January 23, at 12:00 noon, after which I will enter a preliminary injunction. Any motion to stay may also be raised in this time period. If both parties wish to confer with respect to the terms of the preliminary injunction and request to extend these deadlines, they may notify the clerk and I will respond promptly to any such joint request. SO ORDERED.

Christopher K. Barry-Smith
Justice of the Superior Court