A King County Superior Court judge on Thursday issued a preliminary injunction requiring online prediction market Kalshi to stop accepting the majority of bets and contracts from customers in Washington, finding the company likely is operating an illegal gambling enterprise under state law.
Scope of the order
Judge John McHale ordered Kalshi to cease taking wagers in several broad categories by the middle of next week, but allowed the platform to continue offering contracts on a narrower set of topics. The ruling follows a lawsuit filed in March by Washington Attorney General Nick Brown, who accused the company of violating the state's anti-gambling statutes.
The court found evidence that Kalshi functions as an online betting platform and likely breaches multiple provisions of Washington law. The company had previously maintained it is a prediction market regulated by the federal Commodity Futures Trading Commission and therefore not subject to state gambling restrictions.
"Kalshi operates an online betting platform," Judge McHale wrote in the injunction, adding that the company likely is violating multiple provisions of state law.
What residents in Washington can and cannot wager on now
Under the injunction, Kalshi must stop accepting bets or contracts in Washington on categories including sports, elections, politics, entertainment, culture, technology and science. The judge permitted Kalshi to continue operating markets tied to areas such as economics, finance, climate and commodities.
| Prohibited in Washington | Permitted in Washington |
|---|---|
| Sports | Economics |
| Elections and politics | Finance |
| Entertainment and celebrity events | Climate-related metrics |
| Culture, technology and science topics | Commodities |
Company response and next steps
Kalshi has appealed the injunction and said it is evaluating all legal options. A company spokesperson reiterated its position that the Commodity Futures Trading Commission has exclusive jurisdiction over the exchange.
"The CFTC 'has exclusive jurisdiction over our exchange,' Kalshi spokesperson Jacki McGavick wrote in an email. 'We respectfully disagree with the court’s decision and are considering all legal options.'"
The case remains on a path toward trial, and the injunction addresses only the immediate question of whether Kalshi must stop certain activities while litigation proceeds.
Local and industry implications
The ruling highlights a broader regulatory fault line between state anti-gambling statutes and federal oversight of commodities and derivatives platforms. In Washington, anti-gambling laws are comparatively strict, and the attorney general’s action signals active enforcement against businesses the state views as circumventing those rules.
For Washington residents who used Kalshi to place wagers on subjects now barred, the injunction could change how they access and use prediction markets. Kalshi has built partnerships with national news organizations and sports leagues and had marketed itself as allowing users to "bet on everything," language prosecutors used in court filings to support the gambling allegation.
Consumer protections and what to watch
Consumers in Washington should expect immediate changes on Kalshi’s platform for the prohibited categories. The injunction does not address unresolved questions about account balances, refunds or previously settled contracts; those matters could be addressed in further court proceedings or settlement negotiations.
Observers will also be watching how the federal agency that oversees commodity markets responds. The CFTC under prior administrations has taken a permissive stance toward some prediction markets, and a clash between state courts and federal regulators could prompt appeals that reach higher courts or inform future legislative action.
Background on prediction markets
Prediction markets let participants buy and sell contracts tied to the likelihood of future events, offering a financial return if their forecast proves accurate. They have grown in mainstream visibility and have been used by media and analytics organizations to gauge expectations for elections, economic indicators, and other outcomes.
Washington’s injunction is among the most significant legal challenges Kalshi has faced at the state level and could influence how other states treat similar platforms.
As the appeal proceeds, Washington consumers and industry stakeholders will be monitoring court filings and regulatory statements for guidance about the future availability of specific markets and the interplay between state gambling laws and federal jurisdiction.
