Washington State Court Grants Preliminary Injunction Against Kalshi

The King County Superior Court has sided with the State of Washington in its bid to halt Kalshi’s operations, granting a preliminary injunction requested by Attorney General Nick Brown. The ruling follows the original enforcement action Brown filed in March 2026.

The court’s decision rested on a clear distinction between gambling regulation and futures market oversight. In its order, the court stated that “regulation of gambling and regulation of futures markets are different fields of regulation,” and that allowing Washington to police activities falling under its gambling laws does not undermine the Commodity Exchange Act’s goal of uniform futures trading supervision.

Brown had argued that Kalshi’s event contracts amount to gambling under state law, since users stake money on the outcome of contests of chance or future contingent events for the chance of a payout. With this ruling, Washington becomes the fourth state to obtain a preliminary injunction against Kalshi, joining Massachusetts, Nevada, and Michigan.

Though the court approved the injunction on July 20, it will not take effect until at least August 5. Both Kalshi and the state are required to submit additional arguments by August 3, after which the court will weigh the filings.

A key component of the injunction involves geofencing requirements that Kalshi must implement to block access from Washington. The operator has previously resisted such measures in Nevada and Michigan.

In a related development, the Commodity Futures Trading Commission exercised its authority to stay an emergency rule change Kalshi proposed in Michigan, preventing the operator from cancelling trades in the state despite being ordered to cease activity on June 29. Kalshi representatives said the company is reviewing the CFTC’s order and weighing its next steps. Michigan regulators, including the Gaming Control Board, have not yet commented.