Massachusetts Judge Outlines Details Of Injunction Against Kalshi: No Sports-Related Contracts

By Bill Speros

Jan 27th, 2026 4:23 PM EST

2YKEKBA Boston Massachusetts Quincy Market shopping mall Freedom Trail

A judge has outlined the forthcoming details of a Massachusetts injunction against Kalshi that prohibits the prediction market from offering sports-related contracts to users in the state.

In a filing Tuesday, Judge Christopher Barry-Smith reaffirmed his January 20 ruling that Kalshi’s sports contracts constitute illegal sports wagering under Massachusetts law when offered without a license. The new order clarifies how that ruling will be enforced while the case continues.

Key Takeaways

• Sports contracts banned going forward: Kalshi will be prohibited from offering sports-related contracts to Massachusetts users, directly or indirectly unless it obtains a license under state gaming law.
• 30-day compliance window: The judge expects the ban to be implemented via geolocation and other technical controls within 30 days of the injunction.
• Limited notice requirements: Massachusetts users only need to be notified if they attempt to place a prohibited trade.
• Compliance reporting required: Kalshi must submit a compliance mechanism and reporting plan within the same 30-day window.

What Happens to Existing Contracts

• Existing positions are allowed to remain active. But users in the Commonwealth will not be able to add any funds to them
• Users may sell or settle pre-injunction contracts, and Kalshi may collect fees tied to those actions.
• Increasing the size of an existing position is banned, as it would amount to placing a new wager.

What the Injunction Does Not Cover

• No marketing restrictions: The judge declined to regulate Kalshi’s national marketing, focusing instead on blocking transactions themselves.
• No account bans: Kalshi may continue to allow Massachusetts users to create and maintain accounts. It also offers non-sports contracts not at issue in the case.

What’s Next

• The parties have until February 4, 2026 to submit either a jointly negotiated injunction or competing proposed orders.
• The court will separately rule on Kalshi’s emergency request to stay enforcement of the injunction.

Bottom line: The judge is drawing a sharp line. Kalshi can keep operating nationally, but sports betting-style contracts are effectively shut down in Massachusetts unless licensed. However, its non-sports related contracts will remain available.

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