A federal judge has remanded a case involving the Commonwealth of Massachusetts and KalshiEX LLC (Kalshi) back to the state jurisdiction.

This development follows an extensive legal dispute initiated by a case titled “Violation of sports wagering statute,” brought forth by Massachusetts Attorney General Andrea Joy Campbell. Kalshi had sought federal court support for its arguments, citing its status with the Commodity Futures Trading Commission (CFTC) and the provisions of the Commodity Exchange Act (CEA).

The initial complaint alleged that Kalshi was providing event contracts across its platform to Massachusetts residents classified as “event contracts” without the necessary licensure from the Massachusetts Gaming Commission, in violation of G.L. c. 23N. Judge Richard G. Stearns of the U.S.

District Court for the District of Massachusetts has determined, as noted by court commentator Daniel Wallach, that the matter should be resolved at the state level.

Wallach shared the decision to remand the case on social media, which could significantly undermine Kalshi’s federally sanctioned sports event contracts.