A federal judge has ruled that Kalshi’s lawsuit against the state of Massachusetts must be heard in a state court, not a federal court, in a decision that appears to give Massachusetts a major advantage in its attempt to force Kalshi to stop offering sports event contracts in the state.
The decision from the U.S. District Court for the District of Massachusetts to have the Superior Court for Suffolk County — a state-level court — hear the case was announced Tuesday and cannot be appealed.
It opens up a new playing field in the battle between Kalshi and states, and may potentially encourage other state attorneys general to file state-level lawsuits against prediction markets.
