Key Highlights:
- A Washington judge temporarily blocked Kalshi's sports prediction markets.
- The court ruled the contracts violate state gambling laws.
- Kalshi argues federal law overrides state regulation.
A Washington court has granted a preliminary injunction preventing Kalshi from offering sports-related prediction markets within the state.
The judge ruled that Kalshi's contracts constitute illegal gambling under Washington law and said protecting consumers outweighs any potential harm to the company. The injunction is expected to take effect in early August unless further legal developments occur.
Kalshi maintains that its markets are regulated by the Commodity Futures Trading Commission and argues that federal law should take precedence over state gambling laws.
The ruling adds to Kalshi's growing legal challenges, with similar restrictions already in place or under consideration in several other U.S. states.
