coindesk.com
A judge in Massachusetts is on his way toward issuing a preliminary injunction to stop Kalshi's sports prediction contracts there, agreeing with state authorities that they're potentially violating its sports-betting laws.
Superior Court Justice Christopher Barry-Smith issued a ruling on Tuesday that says the court is on its way this week toward prohibiting Kalshi "from offering sports-related event contracts in the absence of the required license under the Sports Wagering Law."
The judge said that the state needs to propose its injunction tomorrow in such a way that it doesn't derail people's existing contracts, then by Friday Kalshi has to respond to that proposal. The judge will order the halt at the end of the week under that agreement, though a window remains open for requested stays or delays.
A spokesperson for Kalshi didn't immediately respond to a request for comment.
In September, the state's attorney general filed a lawsuit accusing Kalshi's binary contracts of violating Massachusetts sports-betting laws.
In the Tuesday ruling, the judge noted, "requiring Kalshi to be licensed to offer its sports-related event contracts in Massachusetts serves the public interest."