BOSTON, MA – A Massachusetts judge has granted the state’s request for a preliminary injunction against a sports prediction market platform, concluding that the company is likely offering unlicensed sports wagering in violation of state law.
According to Reuters, Suffolk County Superior Court Judge Christopher Barry-Smith ruled that the platform may not allow Massachusetts residents to place financial bets on the outcomes of sporting events without obtaining a license under the state’s Sports Wagering Law. The ruling stems from a lawsuit filed by Massachusetts Attorney General Andrea Joy Campbell.
Court’s Findings
In a Jan. 20 decision, the court found that the Commonwealth is likely to succeed on the merits of its claim that the platform is operating illegally by offering sports-related event contracts without a license. The judge rejected the company’s argument that federal commodities law preempts Massachusetts’ authority to regulate sports wagering, concluding that Congress did not intend to displace states’ traditional role in regulating gambling.
The court also determined that licensing and regulatory oversight of sports wagering serve important public interests, including public health and safety and the Commonwealth’s financial interests.
As part of the ruling, the judge allowed the Commonwealth’s motion for a preliminary injunction and denied the company’s motion to dismiss. However, the court noted that it has not yet finalized the precise mechanics of the injunction, including how to prohibit sports-related event contracts without improperly affecting existing contracts, and ordered additional briefing before issuing the final injunction.
Reuters reported that the judge plans to finalize the injunction following a subsequent hearing and will consider whether to pause the order to allow time for an appeal.
Tribal Gaming Industry Reaction
The California Nations Indian Gaming Association welcomed the Massachusetts ruling, with Chairman James Siva praising the court for taking what he described as a firm stand against unlicensed sports prediction markets.
In a statement issued Jan. 20, Siva said Kalshi is “an unlicensed prediction market that is flagrantly violating state law and tribal sovereignty by pushing unregulated sports gambling products to anyone with a smartphone.” He argued that such companies are circumventing regulatory frameworks that tribes and states rely on to protect consumers, ensure accountability, and generate tax revenue.
“These companies are dodging rules that tribes and states rely on to protect consumers, generate tax revenue, and ensure accountability,” Siva said. “The law is clear.”
