Washington state judge orders Kalshi to halt sports and other betting

A Washington state judge, McHale, has granted a preliminary injunction against prediction market operator Kalshi, blocking it from offering wagers on sports, elections, natural disasters and other events within the state. The order follows a lawsuit filed by Washington alleging that Kalshi violated the state's gambling and consumer protection laws.

To win a preliminary injunction, a plaintiff must show a likelihood of success on the merits of its claims. The judge found that Washington is likely to succeed in proving that Kalshi broke state law.

According to the ruling, Kalshi runs an online betting platform marketed as a "prediction market" that lets users wager on thousands of topics, including sports, political elections, entertainment, pop culture, and even whether public figures will say specific words or phrases. The judge concluded that Kalshi's provision, marketing and advertising of what amounts to illegal gambling constitutes unfair and/or deceptive trade practices under Washington law.

A state official identified as Brown welcomed the ruling, saying Kalshi had profited by promoting bets on sports, elections, natural disasters, and events tied to the Iran War, among other topics. Under the new order, Kalshi is now banned from offering wagers on most of those subjects within Washington.

Kalshi maintains it isn't bound by individual state laws, arguing that the US Commodity Futures Trading Commission (CFTC) holds exclusive jurisdiction over prediction markets. The Trump administration has echoed this argument and has sued states attempting to regulate such platforms. The broader fight involving states, the federal government and Kalshi is currently playing out in multiple state and federal courts nationwide.

A Kalshi spokesperson said the company is regulated by the CFTC, which it says has exclusive jurisdiction over its exchange, and that Kalshi disagrees with the court's decision and is considering all legal options.