Massachusetts Judge Bars Kalshi from Offering Sports Betting Contracts

A Massachusetts judge has issued a significant ruling blocking Kalshi, the federally regulated event contract exchange, from offering products tied to the outcome of professional sports events within the Commonwealth. The decision sides with state regulators who argued that Kalshi’s binary options related to sports results constitute illegal sports wagering under Massachusetts law, bypassing the state’s licensed gambling framework.

The dispute centered on whether Kalshi’s financial instruments—which allow users to trade on the likelihood of an event occurring (e.g., whether the Boston Celtics will win the NBA Finals)—should be classified as regulated financial contracts or as gambling products. While Kalshi is registered with the Commodity Futures Trading Commission (CFTC) for certain contracts, the court determined that, in this specific context, the products functioned materially as unlawful bets prohibited by the state.

This ruling delivers a major setback to Kalshi’s expansion efforts in Massachusetts and sets a powerful precedent regarding the classification of event contracts at the state level. The court’s rejection of Kalshi’s argument that its federal registration exempts it from state gambling restrictions underscores the legal tension between federal financial oversight and state consumer protection laws related to wagering. Kalshi has not yet announced whether it plans to appeal the decision.

Source: Massachusetts judge bars Kalshi from offering sports bets: Report