A state-court injunction against Kalshi's sports contracts has been stayed since February 2026 while Massachusetts' highest court considers Kalshi's appeal.
Attorney General Andrea Campbell sued Kalshi in Suffolk Superior Court on Sept. 12, 2025; a federal judge sent the case back to state court on Oct. 28, 2025. Judge Christopher Barry-Smith granted a preliminary injunction against Kalshi's unlicensed sports contracts on Jan. 20, 2026 and refused to stay it, but on Feb. 17, 2026 Appeals Court Justice Sabita Singh stayed the injunction pending appeal. The Supreme Judicial Court took the appeal (SJC-13906) in March, heard argument on May 4, 2026, and had not ruled as of mid-October 2026. Robinhood, Polymarket, Novig and Underdog have filed their own federal suits against the attorney general, several of them paused until the SJC rules.
Massachusetts's attorney general signed an Ohio-led amicus brief, joined by 38 other states and DC, asking the U.S. Supreme Court to grant New Jersey's petition in Flaherty v. KalshiEX (No. 26-299).
Underdog's exchange and its brokerage affiliate sued the attorney general and others in federal court, arguing federal commodities law preempts state enforcement.
The Supreme Judicial Court heard argument on Kalshi's appeal (SJC-13906); reports described the justices as skeptical of Kalshi. No decision had been reported as of Oct. 19, 2026.
The Supreme Judicial Court moved the appeal to its own docket (SJC-13906), invited amicus briefs on federal preemption and set an expedited briefing schedule; the stay stayed in place.
Appeals Court Justice Sabita Singh (No. 2026-J-0143) granted Kalshi's motion to stay the injunction pending appeal, without expressing a view on the merits, and expedited the appeal.
Judge Barry-Smith entered the injunction and denied Kalshi's emergency motion to stay it, allowing 30 days for compliance so Kalshi could seek a stay from the Appeals Court.
Suffolk Superior Court granted the attorney general's preliminary injunction barring Kalshi from offering sports event contracts in Massachusetts without a state license.