A Massachusetts judge has barred prediction markets platform Kalshi from offering sports betting to residents of the state, according to a Reuters report.
Suffolk County Superior Court Judge Christopher Barry-Smith said he would issue a preliminary injunction preventing Kalshi from operating sports wagers without a gaming licence.
The injunction followed a lawsuit filed by Massachusetts Attorney General Andrea Joy Campbell alleging Kalshi offered illegal and unsafe sports wagering.
The court action reportedly came at the request of Campbell after the case was brought in September.
Kalshi did not respond to requests for comment by the time of publication.
Kalshi is one of the largest prediction market platforms globally, alongside rival Polymarket.
The platform offers event-based contracts covering topics ranging from US politics to international sporting events.
The Massachusetts case forms part of broader scrutiny of prediction markets by US states and federal lawmakers.
Lawmakers have raised concerns over regulation, insider trading and who should be permitted to trade on political and sports prediction markets.