Massachusetts court orders to ban prediction market platform Kalshi, regulatory crackdown continues

[BitPush] U.S. regulatory agencies are increasing pressure on prediction markets. Massachusetts Superior Court Judge Christopher Barry-Smith issued a ruling this Tuesday, planning to issue a preliminary injunction within the week to prohibit prediction market platform Kalshi from operating unlicensed sports event prediction contracts in the state. The judge stated that requiring Kalshi to obtain a business license “serves the public interest.”

What’s the background? The state Attorney General has been suing Kalshi since September last year, claiming that its binary contract products violate local sports betting laws. According to the litigation process, the state government must submit a specific injunction plan by Wednesday, and Kalshi has until Friday to respond. The judge plans to issue a formal injunction over the weekend, suspending its related operations in the state — but existing contract positions will be allowed to be closed in an orderly manner.

As of press time, Kalshi has not publicly responded to this matter. This case once again highlights the regulatory challenges faced by the prediction market sector in the United States. On one hand, platforms want to expand their business; on the other hand, regulations on sports betting vary across states, and compliance costs and legal risks are rising.