TLDR A Washington judge granted a preliminary injunction against Kalshi over its sports event contracts. The court rejected Kalshi’s argument that federal law blocks the state from enforcing its gambling rules. The judge said gambling law and futures market law are separate legal areas. Washington joins Massachusetts, Nevada, and Michigan in winning similar early rulings against Kalshi. Both sides must submit injunction details by August 3, with the order set to take effect August 5.
A Washington judge has ruled against Kalshi in an ongoing legal fight over sports event contracts. The King County Superior Court found that the company is likely breaking the state’s gambling laws.
The judge issued a preliminary injunction on Monday. It won’t take effect right away.
The court set August 5 as the earliest possible start date. Before then, both sides need to submit proposed language on how the injunction should work.
The case centers on one core question. Does federal commodities law protect Kalshi’s sports contracts, or can states still treat them as gambling?
The Court’s Reasoning
The judge decided that gambling regulation and futures market regulation are two different legal areas. Enforcing state gambling rules does not get in the way of the federal government’s goal of having one national system for futures markets.
This finding goes against Kalshi’s main defense. The company has argued in several lawsuits that its status as a federally regulated exchange protects it from state gambling laws.
Kalshi is registered with the Commodity Futures Trading Commission as a designated contract market. Because of that, the company says states cannot block contracts that are already approved under federal rules.
Washington argued something different. The state said it isn’t trying to regulate futures exchanges at all.
Instead, Washington says it’s simply enforcing its existing ban on sports