Massachusetts secured a legal win last week when Suffolk County Superior Court Judge Christopher Barry-Smith denied Kalshi’s emergency request to maintain access to its sports event contracts in the state. The ruling requires Kalshi to block Massachusetts users from these contracts within a 30-day period, ending March 9.
The judge had previously granted the state a preliminary injunction last month after Attorney General Andrea Campbell filed suit against Kalshi for allegedly operating as an unlicensed sportsbook. Barry-Smith determined that while some Kalshi markets are federally regulated as commodities under the Commodity Futures Trading Commission (CFTC), that designation does not exempt them from state gambling regulations.
“Kalshi adopted its business model – relying on CFTC regulation of ‘swaps’ to offer nationwide sports betting in contravention of state gaming laws – with eyes wide open,” Barry-Smith wrote.
The judge also rejected Kalshi’s claim of “irreparable harm,” noting, “Economic loss alone does not usually rise to the level of irreparable harm which a party must establish to obtain a preliminary injunction.”
Kalshi may appeal and seek a stay from an appellate court, but until then, it must implement geolocation technology to block Massachusetts users from accessing its sports contracts. Non-sports markets will remain unaffected.
Polymarket Sues in Response
Polymarket preemptively filed a lawsuit against Attorney General Campbell and the Massachusetts Gaming Commission in federal court. Polymarket claims that Massachusetts’ enforcement threatens “imminent and irreparable harm” to its operations.
“These are national markets with critical questions that must be resolved in federal court. Racing to state court to try to shut down Polymarket US and other prediction markets doesn’t change federal law — and states like MA and NV that have done so will miss an amazing opportunity to help build markets for tomorrow,”Polymarket Chief Legal Officer Neal Kumar said.
Polymarket emphasizes that the Commodity Exchange Act gives the CFTC exclusive authority over designated contract markets and preempts state laws attempting to regulate such contracts. The company is seeking both preliminary and permanent injunctions to prevent Massachusetts from enforcing its gaming regulations.
Wider Legal Battles Across the U.S.
Kalshi faces roughly 20 lawsuits nationwide, including disputes in Nevada, Maryland, New Jersey, California, New York, and Ohio. Judges have reached varied rulings: in Nevada, a preliminary injunction initially allowed Kalshi to operate before being reversed; in New Jersey, Kalshi received an injunction continuing in the Court of Appeals; in California, a judge ruled tribal regulators could not block Kalshi from operating on tribal lands.
New CFTC Chair Michael Selig said last month the agency would reassess its involvement in ongoing court cases concerning prediction markets, defend its jurisdiction over commodity derivatives, and implement “clear standards for event contracts that provide certainty.”
Nevada courts recently issued a two-week temporary restraining order against Polymarket, citing potential “immediate, irreparable” harm to the state’s gambling industry. A preliminary injunction hearing is scheduled for February 11.
With federal and state authorities continuing to clash over regulation, the disputes surrounding Kalshi and Polymarket may ultimately reach the Supreme Court, raising questions about the limits of state authority versus federal oversight in the rapidly growing prediction markets sector.
Source:
“Massachusetts judge denies Kalshi request for emergency stay”, igamingbusiness.com. February 9, 2026
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