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A Washington state judge has granted a preliminary injunction blocking Kalshi from offering event contracts in the state, adding another court win for states arguing the prediction market operator is violating local gambling laws.
Judge John McHale of King County Superior Court said Washington showed a likelihood of “actual and substantial injury” to consumers from illegal gambling activities if an injunction were not issued. The court also found that the public interest and potential harm to consumers outweighed the harm to Kalshi.
The ruling adds Washington to a growing list of states that have won court orders restricting Kalshi’s activities. Reuters reported that Massachusetts, Michigan and Nevada have also secured similar relief. New York did as well on July 8, when a federal judge rejected Kalshi’s bid to block enforcement of the state’s gambling laws.
The broader dispute is over who has authority to regulate prediction markets. The U.S. Commodity Futures Trading Commission has claimed exclusive jurisdiction over the industry and has challenged regulatory activity in at least nine states, according to Reuters. In April, a divided federal appeals court blocked New Jersey gaming authorities from regulating Kalshi’s sports event contracts.
Kalshi said after the Washington ruling that states do not have jurisdiction to regulate prediction markets and that it was disappointed by the state’s continued legal action.
For New York readers, the Washington decision does not change New York law on its own. But it does add to the list of courts siding with states, at least at the preliminary injunction stage, as the legal fight over prediction markets continues.
Prediction markets such as Kalshi and Polymarket let users wager on the outcomes of events including sports and elections. Reuters, citing Dune Analytics, said about $19.04 billion was wagered through the two platforms on the recently completed soccer World Cup.
What comes next is less clear. Reuters said the Washington ruling was preliminary and did not say whether Kalshi will appeal. The report also did not specify the full scope of the injunction or the exact event contracts at issue in Washington.
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Source: As reported by Jonathan Stempel.
