U.S. Court Injunction Arrives: Sports Prediction Contracts Stuck at Regulatory Checkpoints

TokenSherpa · 2026-01-20T20:40:10+00:00

The Massachusetts court in the United States is about to sign a preliminary injunction to shut down Calshi's sports prediction contract business due to potential violations of local gambling laws. The injunction is expected to take effect this week, indicating that traditional judiciary is very cautious about the compliance requirements of on-chain prediction markets.

TokenSherpa

2026-01-20 20:40:10

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【Crypto World】The controversy involving the Massachusetts court in the United States has escalated. A judge is about to sign a preliminary injunction to completely shut down Kalshi’s sports prediction contract business in the state. The court has determined that such contracts pose a risk of violating local sports betting laws and has decided to act preemptively.

The injunction is expected to take effect this week, targeting all unlicensed sales activities. Although the judge acknowledged that this mechanism can bring certain value to the public, under the current legal framework, risk management is clearly prioritized. The final ruling will be officially released on Friday.

This move reflects the cautious attitude of the traditional judicial system towards on-chain prediction markets—if you want to play this game, compliance certificates are indispensable. This is a signal for the entire prediction contract ecosystem.

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DeFiChef

· 1h ago

Here we go again, the US courts have blocked the way. Compliance is truly a hurdle that can't be avoided.

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GasGasGasBro

· 14h ago

Another one cut down by regulation. The US really has no patience for on-chain products.

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CryptoSurvivor

· 14h ago

Here we go again, the US is pushing projects on the chain... Compliance really needs to be taken seriously.

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GmGmNoGn

· 14h ago

Here they come again, regulators always one step ahead. I knew from the start that the US would do this; operating without a license is the original sin.

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Whale_Whisperer

· 14h ago

Here we go again, every ban in the US is a sure thing. Compliance is truly an unavoidable hurdle. I've known for a long time that this path is difficult. To survive in prediction contracts in the US, you need just as many credentials. Massachusetts is quite strict, directly banning it. I feel more states will follow suit later. The judge acknowledged the value but still banned it—that's the game of rules. If you don't have the certificate, don't even think about playing. The spring of prediction markets is still far away; first, we have to get past the regulatory hurdle.

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NeverPresent

· 14h ago

Here we go again, the compliance hurdle can never be cleared.

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0xSherlock

· 14h ago

Here we go again, the regulatory sword has never stopped. Compliance, compliance—looks like on-chain activities really have to follow the proper procedures, or else be prepared to face bans.

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