A Massachusetts judge has issued a preliminary injunction against Kalshi, mandating the cessation of its sports-related prediction markets in the state. According to NS3.AI, Kalshi argues that its event contracts are not sports bets and fall under federal regulation by the Commodity Futures Trading Commission (CFTC), rather than state gambling laws. This ruling represents the first court order of its kind against a prediction market platform in the United States and may signal potential similar actions against other platforms, such as Polymarket.