UPDATE: The Ohio Casino Control Commission has taken urgent legal action, citing a recent ruling from a Massachusetts court to bolster its opposition against the prediction market company Kalshi. This development comes as Ohio battles Kalshi’s motion for a preliminary injunction aimed at circumventing state regulations.
The commission is currently blocking Kalshi’s attempts to seek injunctive relief from Ohio law, a crucial step in an ongoing legal skirmish that could set significant precedents for prediction markets nationwide. The Massachusetts court, led by Judge Barry Smith, granted an injunction against Kalshi, asserting that the company must adhere to state regulations when offering sports-related event contracts.
In a pivotal ruling dated January 23, 2026, the Massachusetts court declared that Kalshi failed to prove that the Commodity Exchange Act preempts state sports-gambling laws. This critical decision is now part of the official record in seven different lawsuits, with Ohio’s case being the latest to reference it as “supplemental authority.”
According to gambling lawyer David Wallach, the Massachusetts court’s decision denied Kalshi’s motion to dismiss the state’s enforcement action and granted the state’s motion for a preliminary injunction. This ruling prohibits Kalshi from operating sports-related event contracts in Massachusetts without first obtaining a state license.
The implications of this ruling extend well beyond Massachusetts. By incorporating this decision into its argument, Ohio strengthens its position against Kalshi, suggesting that similar injunctions could be enforced in other states as regulators tighten their grips on prediction markets.
As states across the U.S. grapple with how to regulate these emerging markets, Ohio’s legal maneuvers reflect a growing trend among state authorities to impose restrictions on companies like Kalshi, which they argue should not bypass existing betting regulations.
This situation is developing rapidly, and further actions from Ohio’s courts could follow soon. Stakeholders in the prediction market space are urged to monitor these developments closely, as they could significantly impact the future of prediction markets throughout the United States.
Stay tuned for additional updates as this story unfolds.
