Washington Judge Blocks Kalshi Prediction Market Over State Gambling Laws

King County Superior Court Judge John McHale granted Washington State a preliminary injunction against prediction‑market platform Kalshi. The court found the company likely violated the Washington Gambling Act and Consumer Protection Act by offering sports and other event contracts that function as illegal gambling. McHale rejected Kalshi’s argument that the federal Commodity Exchange Act preempts state law, allowing the state to proceed with its claims.

The injunction orders Kalshi to preserve records related to Washington consumers and requires the court to issue detailed operating terms by early August (by Aug 5, 2026). Washington seeks restitution for consumers, disgorgement of unlawful proceeds, and civil penalties. Kalshi maintains that states lack jurisdiction over federally regulated prediction markets and says it will continue to fight the action. The case adds to similar legal actions in Massachusetts, Michigan, Nevada and New York aimed at restricting Kalshi’s activities.