A judge in the Massachusetts Superior Court has published preliminary thoughts around a 30-day timeline for Kalshi to implement geofencing technology.
Geofencing is a digital barrier that functions like a map or territory, permitting or restricting access to certain content, or, in the case of Kalshi, to the prediction market’s features.
Judge Christopher K. Barry-Smith oversaw the legal battle that could have wider implications in a dispute over state-regulated jurisdictions and the legality of prediction markets operating in states without a license.
The case dates back to Fall 2025, when Kalshi was alleged to have offered illegal sports gambling without a license. State Attorney General Andrea Joy Campbell presented, at the time (September 2025), that Kalshi was earning more on sports bets than state-licensed sportsbooks.
Kalshi’s defense suffered a setback when the case was demoted to the state level, further removing the federal shield from the prediction market operators’ argument. Judge Richard G. Stearns of the US District Court for the District of Massachusetts made the decision and set the playing field for Judge Barry-Smith’s oversight.
Kalshi geofencing takes shape
Well-known legal and gambling commentator Daniel Wallach was on hand to highlight the key parts of Judge Barry-Smith’s preliminary thoughts on X.
Big takeaway:
– Judge leaning towards a 30-day timeline for Kalshi to implement geofencing in Massachusetts, as opposed to the 90-days requested by Kalshi (thank CFTC for that!). https://t.co/pmlvwPRuOS
— Daniel Wallach (@WALLACHLEGAL) January 27, 2026
Judge Barry-Smith’s publication balances the views of his predecessors on the case and has given Kalshi an opportunity to continue. The company would have to incorporate the technology to prevent users in Massachusetts from entering into sports event contracts, but Kalshi could do so without the company holding a state gambling licence.
Wallach pointed out that “Given Kalshi’s ‘nationwide business,’ Kalshi must use ‘technological controls’ to ensure that sports event contracts are not offered ‘directly or indirectly’ to persons in Massachusetts.”
The judge also dismissed Kalshi’s plea for a 90-day compliance window, saying that the company will have 30 days to implement these controls. The court noted that Kalshi has had months to anticipate this requirement, referencing regulatory signals including the CFTC’s September 30, 2025, notice.
Wallach also noted that notifications to users about Kalshi’s features will include a flag when an account holder attempts to place a prohibited sports-related contract.
The preliminary thoughts concluded that the parties’ proposed preliminary injunction order is due by February 4, 2026, but the “Court anticipates deciding Kalshi’s emergency request for a stay of the injunction pending appeal on the same timeline.”
Featured image: Kalshi / Canva
