Washington Court Limits Kalshi: What Learners Should Know

On July 21, 2026 a King County Superior Court judge issued a preliminary injunction that limits Kalshi’s business in Washington. Judge John McHale has found that Kalshi likely violated the Washington Gambling Act and the Consumer Protection Act, and the court will consider a final order in early August. Therefore, many event contracts are now blocked for residents while the litigation continues.

Kalshi is an online prediction market where users trade contracts on sports, politics and other events. The Commodity Futures Trading Commission has asserted federal authority over some prediction markets and has taken actions relating to KalshiEX this year. While federal regulators have moved to protect exchange functions, several state courts have restricted Kalshi’s operations and state officials have argued that the contracts are illegal gambling. These legal conflicts have been active in multiple states and are shaping how prediction markets operate.

Kalshi has said it will continue to contest the state cases. However, Washington residents currently face limits on placing new bets on most Kalshi contracts until the court issues further orders. The CFTC has also stayed KalshiEX rule changes and ordered fulfillment of pending trades in July.