The California Nations Indian Gaming Association Welcomes Massachusetts Ruling Blocking Kalshi
The California Nations Indian Gaming Association applauded a Massachusetts court decision blocking Kalshi from offering sports-related betting contracts without a licence.
LISTEN TO THIS ARTICLE:CNIGA Chairman James Siva said the ruling represents a critical stand against what he described as unlicensed and unregulated sports gambling that undermines state law and tribal sovereignty.
In a statement issued following the decision, Siva praised Massachusetts regulators and the court for taking action against Kalshi, which he said has been operating outside established legal frameworks. According to Siva, prediction market platforms offering sports-based contracts are bypassing rules that states and tribal governments rely on to protect consumers, ensure accountability, and generate tax revenue.
“We applaud Massachusetts for taking a firm stand against Kalshi, an unlicensed prediction market that is flagrantly violating state law and tribal sovereignty by pushing unregulated sports gambling products to anyone with a smartphone”
He added that allowing such platforms to operate freely threatens the integrity of regulated gaming systems that tribes and states have spent decades building.
Judge Orders Preliminary Injunction
The statement follows a ruling by Judge Christopher Barry-Smith, who granted Massachusetts a preliminary injunction prohibiting Kalshi from offering sports-related event contracts without the required sports wagering licence. The judge denied Kalshi’s motion to dismiss the case, siding with the Commonwealth’s argument that the platform’s sports contracts fall under existing sports betting laws.
Judge Barry-Smith wrote that Massachusetts is entitled to block Kalshi’s activities in the absence of proper licensing, stating that doing so serves the public interest. The court ordered the Commonwealth to propose the specific terms of the injunction by Wednesday, with the order expected to take effect after a hearing on Friday. Once implemented, the injunction would prevent Kalshi from offering new sports-related contracts in the state.
The judge also rejected Kalshi’s claim that it is exempt from state regulation because it operates under federal oversight. He did not accept the argument that barring Kalshi from Massachusetts would cause undue harm to the company’s business, concluding that state regulators have clear authority in this area.
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Growing Legal Pressure on Prediction Markets
Siva said the Massachusetts ruling reflects a broader shift in how courts are viewing prediction markets tied to sports outcomes. “Courts across the country are waking up to the threat these companies pose”, he said, pointing to a Nevada federal court decision late last year that cleared the way for potential criminal charges against Kalshi for offering illegal sports betting in that state.
Kalshi has faced legal challenges in several jurisdictions, including a Nevada court ruling, Ohio, New Jersey, and New York. Siva argued that these cases highlight the need for prediction markets to comply with the same laws that govern licensed sportsbooks and tribal gaming operators.
“The law is clear, and it is past time that Kalshi and other prediction markets abide by it”, Siva said. CNIGA’s statement frames the Massachusetts decision as an important moment for tribal sovereignty and regulatory enforcement, signalling that states and tribes are prepared to push back against platforms operating outside established gaming laws.
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