Washington Court Blocks Kalshi From Offering Sports Betting Contracts

A Washington state court has temporarily halted Kalshi from offering sports related prediction contracts, ruling that the platform’s activities amount to illegal gambling under state law.

Judge Sides With State Regulators

King County Superior Court Judge John McHale granted the state’s request for a preliminary injunction against Kalshi on Monday. In his written ruling, the judge stated that Kalshi offers illegal gambling activities to Washington residents and actively solicits bets through its platform.

Federal vs. State Authority at the Core of the Dispute

The case hinges on whether federal commodities law overrides state gambling rules. Kalshi has argued that the Commodity Exchange Act gives federal regulators exclusive jurisdiction, but Judge McHale rejected that argument outright, writing that federal law does not preempt Washington’s authority.

Part of a Broader Legal Battle Nationwide

Washington becomes the latest state to move against Kalshi’s sports contracts. Michigan issued a similar restraining order last month, while a New York judge recently declined to block that state’s gambling enforcement against the company. According to sports and gaming attorney Daniel Wallach, states have won 19 of 23 court decisions on this issue so far, a trend he says increasingly favors state regulators. He noted Kalshi is already barred from sports contracts in Nevada and Michigan, with Washington set to join that list.

Where Things Stand for Kalshi

Separately, the Commodity Futures Trading Commission sued New York in April, seeking a court ruling that federal law gives it sole authority over event contracts. Despite the mounting legal pressure, Kalshi remains the largest prediction market platform globally by trading volume, reporting $33 billion in monthly volume in June compared to a combined $13.95 billion for rival Polymarket and its US platform.