Washington Judge Blocks Kalshi Sports Markets, Citing Illegal Gambling
Summary
A Washington state judge granted a preliminary injunction blocking Kalshi's sports prediction markets, ruling they constitute illegal gambling under state law and that the Commodity Exchange Act does not preempt state regulation. The injunction takes effect August 5, with additional filings due August 3. This is the latest in a series of state-level setbacks—Kalshi is already barred in Nevada and Michigan, and a New York judge recently denied its request to block enforcement. The ruling adds to a growing legal headwind: states have now won 19 of 23 preliminary injunction or TRO decisions in prediction-market cases. While Kalshi's core non-sports business remains strong—monthly volume hit $33 billion in June—the expanding patchwork of state bans threatens its sports-contract expansion, a key growth vector ahead of a potential IPO. The CFTC's separate lawsuit against New York could eventually resolve the federal preemption question, but that process will take years.
This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: The Block.