Key Moments:
- A Massachusetts Superior Court judge suggested Kalshi may get only 30 days, not the requested 90, to launch geofencing that blocks in-state users from sports contracts.
- The legal action arises from a January 20 court ruling that bars Kalshi from enabling sports wagering in Massachusetts without a license.
- Both parties must submit proposed orders by February 4, 2026. The court expects further proceedings shortly afterward.
Strict Geofencing Timeline for Kalshi
A Massachusetts Superior Court judge proposed that Kalshi could have just 30 days to implement geofencing to restrict Massachusetts users from sports-related contracts. The court shortened the timeline from the 90 days Kalshi requested. The move follows a January 20 injunction that bars Kalshi from offering sports wagers in the state without proper licensing.
Judge Christopher K. Barry‑Smith stressed that the injunction requires active enforcement through technical measures. He clarified that notifications should appear only when a Massachusetts user attempts a sports-related wager, not in broader marketing materials.
Background on Legal Action
The dispute began in September 2025, when Attorney General Andrea Joy Campbell charged Kalshi with offering unlicensed sports products. She claimed Kalshi earned more revenue from sports bets than licensed Massachusetts sportsbooks.
The case started in federal court but moved to state court after Judge Richard G. Stearns ruled that local courts should handle the matter. This shift removed Kalshi’s federal court protections.
Operational Changes Mandated by the Court
Judge Barry‑Smith decided that existing contracts created before the injunction will remain valid, as long as users do not increase their positions. Any attempt to expand a position counts as a new bet and is prohibited. Users may still sell or settle existing contracts. The court also allows fees from contract settlements within these limits.
| Action | Permitted? |
|---|---|
| Increasing the size of pre-injunction positions | No |
| Selling/settling existing contracts | Yes |
| Fees from existing contract settlements | Yes |
Marketing and Account Access Guidelines
The court clarified that the injunction does not affect Kalshi’s nationwide marketing campaigns. Its main goal is to stop Massachusetts residents from completing restricted transactions. Residents can still create accounts and access non-sports contracts, which are outside the legal dispute.
Upcoming Legal Deadlines
If the parties cannot agree, both sides must submit proposed orders by February 4, 2026. Kalshi must also file its reply on an emergency motion to stay the injunction that day. Judge Barry‑Smith indicated a quick follow-up, which may include a hearing and a timely decision on the stay.
- Author
Daniel Williams
