Massachusetts Judge Denies Kalshi’s Request To Halt Sports Contract Ban

Super Bowl weekend brought a business boon for Kalshi. That's despite a court ruling in Massachusetts that threatens to shutter its sports offerings in the state. 

The website Gambling News reported that a Suffolk County Superior Court judge refused Kalshi's bid to pause an injunction that forces the company to halt all sports-event contract sales in Massachusetts within 30 days. This turn of events aligns with the state attorney general's view that these offerings amount to unlicensed sports wagering.

Kalshi, which is federally regulated by the Commodity Futures Trading Commission (CFTC), argues that state gaming authorities do not control its contract operations. The company said its products are "financial instruments, not bets." Kalshi said it would continue to fight the injunction.

Despite this situation, Kalshi recorded nearly $1 billion in trading volume across its Super Bowl markets, according to Gambling News. Kalshi's Super Bowl betting patterns were significantly different from those of typical sportsbooks. Contracts tied to halftime show details, musical performances, and advertiser outcomes accounted for more than $400 million of volume. These results highlight user interest in narrative-driven, real-time events rather than traditional sports statistics bets.

Trading activity in in-game player props and statistical markets represented about $66 million, according to Gambling News.

The Super Bowl surge also highlighted the fact that multiple states have refused to permit prediction markets to operate without a sportsbook license. Nevada regulators are taking note of Massachusetts' example and are fighting to ban sports event contracts. Other states are also watching how these cases unfold over the coming months.