Washington Secures Preliminary Injunction Against Kalshi

United States.- 21 July 2026 | www.zonadeazar.com A Washington state court granted a preliminary injunction against Kalshi after finding that its sports and event contracts are likely to violate state gambling laws. The judge also rejected the argument that federal regulation prevents state enforcement.

The ruling represents another legal setback for Kalshi in its attempt to establish that event contracts are financial products regulated exclusively by the Commodity Futures Trading Commission (CFTC).

The court found that Washington is likely to demonstrate that the platform offers unlicensed gambling, wagering and bookmaking activities within the state.

Washington Questions the Legality of Kalshi’s Markets

According to the ruling, Kalshi receives money from Washington consumers, facilitates transactions involving sports, elections, politics, entertainment and culture, and earns revenue through fees charged on its platform.

The judge found that these activities may violate several provisions of the Washington Gambling Act. The court also said Kalshi’s advertising could mislead consumers into believing that its products constitute legal betting within the state.

Court Rejects Federal Pre-emption Argument

Kalshi argues that its contracts are federally regulated by the CFTC and that the Commodity Exchange Act prevents states from applying their own gambling laws.

However, the court rejected this interpretation, stating that financial-market regulation and state gambling enforcement are separate areas of law.

The ruling also noted that complying with Washington law would not prevent Kalshi from meeting its federal obligations.

Public Protection Takes Priority

The judge acknowledged that the injunction could result in compliance costs and financial losses for Kalshi. However, the court determined that consumer protection and the public interest outweighed the potential commercial harm to the platform.

Washington becomes the fourth state to secure a preliminary injunction against Kalshi, following Massachusetts, Nevada and Michigan.

In Michigan, the company has until 12 August to implement geolocation technology preventing access from within the state or face a daily fine of US$500,000.

Next Steps

The Washington court must still determine the precise scope of the injunction. The parties have been instructed to submit proposed terms by 3 August.

The judge intends to issue a final order detailing Kalshi’s specific obligations by 5 August.

Edited by: @_fonta