Massachusetts may ban Kalshi from offering sports betting services

Massachusetts Judge Christopher Barry-Smith ruled on Tuesday that the state has the authority to prohibit the prediction market Kalshi from offering sports betting services within its borders. The ban could take effect as early as this Friday, and if implemented smoothly, it would become the first of its kind in the nation.

In his ruling, the judge stated that any company wishing to operate sports betting in Massachusetts must comply with state laws, including obtaining the necessary licenses from the Massachusetts Gaming Commission (MGC). Previously, Kalshi argued that it was regulated by the Commodity Futures Trading Commission (CFTC), and thus the state government had no authority to intervene, but the judge dismissed this argument. Kalshi began offering sports betting services in January 2025, and by May of the same year, sports betting accounted for 70% of its total revenue.