A Massachusetts court has issued a preliminary injunction against Kalshi, prohibiting the company from operating its sports betting platform in the state. The decision, handed down by Judge Christopher Barry-Smith on January 20, 2026, follows a lawsuit by Attorney General Andrea Joy Campbell, who argued that Kalshi failed to obtain the necessary state license. This ruling underscores the importance of adhering to state gambling regulations and could significantly impact Kalshi's revenue and market strategy. The court's decision highlights Massachusetts' commitment to strict gambling regulation and may set a precedent for other states. The financial implications for Kalshi are considerable, as Massachusetts represents a key market for sports betting. The ruling could prompt other jurisdictions to enforce similar regulations, potentially affecting Kalshi's national expansion plans and revenue streams.