A judge reportedly said that he will issue a preliminary injunction prohibiting the online market prediction platform Kaishi from operating in the state of Massachusetts.
Suffolk County Superior Court Judge Christopher Barry-Smith has ruled that Kaishi cannot allow state residents to use its platform for making financial bets on sporting events without a license.
[adinserter block="1"]Barry-Smith issued the ruling months after Massachusetts Attorney General Andrea Joy Campbell filed a lawsuit in September accusing Kaishi of offering sports wagering under the guise of event contracts without securing a license from the Massachusetts Gaming Commission.
Barry-Smith says he plans to finalize an injunction that will require Kaishi to comply with the state’s sports wagering law following a hearing on Friday, where he may also consider pausing his order to allow time for an appeal.
Says Barry-Smith,
“There is no real question that licensure, and the consequent oversight, of sports wagering operations in the state serves both public health and safety, and the Commonwealth’s financial interest.”
Campbell says that licensed gaming operators in the state are prohibited from offering sports wagering to anyone under 21 years old but Kaishi was offering an addictive betting product without a license to individuals as young as 18.
Meanwhile, Kaishi says that state gaming laws do not apply to its sports event contracts. The platform says these are under the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC) which has the authority over exchange-traded swaps.
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