A Massachusetts Superior Court judge has indicated that prediction market operator Kalshi will face a strict timeline to comply with state gambling laws. Judge Christopher K. Barry-Smith signaled his intention to grant the company only 30 days to implement geofencing technology designed to block Massachusetts residents from accessing sports-related contracts.
This timeline rejects Kalshi’s request for a 90-day implementation window.
The decision is the latest development in the ongoing legal battle initiated by the state regarding unlicensed sports wagering. Following a January 20 ruling that barred Kalshi from offering sports prediction markets in the Commonwealth without a license, the court is now focusing on the technical enforcement of that injunction.
Strict Limits on Wagering
Judge Barry-Smith clarified the operational boundaries for Kalshi during this transition. While the platform must implement notifications triggering only when a user in Massachusetts attempts to place a wager, the restrictions on betting activity are absolute. The court ruled that while contracts purchased prior to the injunction remain valid, users cannot increase their positions.
Any effort to expand an existing stake will be categorized as a new bet and must be blocked. However, the court will permit residents to sell or settle existing contracts, acknowledging that these exit strategies were inherent to the original purchase.
Marketing and Next Steps
The judge notably declined to impose restrictions on Kalshi’s broader marketing efforts. Recognizing that the platform offers non-sports contracts outside the scope of the lawsuit, the court ruled that national advertising campaigns do not need to be altered, provided the technical blockade on Massachusetts transactions is effective.
Both parties are scheduled to submit proposed orders by February 4, 2026, if a mutual agreement cannot be reached. On that same date, Kalshi is expected to file a response regarding an emergency motion to stay the injunction. A final order or a subsequent hearing is expected to follow immediately thereafter.
