Washington State Court approves preliminary injunction request against Kalshi

The King County Superior Court has granted the State of Washington’s preliminary injunction request against Kalshi, following Attorney General Nick Brown’s original enforcement action in March 2026. 

As ruled by the Washington State Court: "Regulation of gambling and regulation of futures markets are different fields of regulation. Allowing for continued State regulation of activities that fit within the legal framework of gambling in the State of Washington does not subvert the purpose of the (Commodity Exchange Act) CEA to uniformly regulate actual futures trading."

Brown had argued that Kalshi's event contracts fall within the state's definition of gambling because users risk money on the outcome of contests of chance or future contingent events in return for a potential payout. 

Washington now becomes the fourth state to obtain a preliminary injunction against Kalshi, joining Massachusetts, Nevada and Michigan. 

Despite receiving approval on July 20, however, the preliminary injunction will not go into effect until at least August 5, as the court still has to weigh submissions from Kalshi and the state, due on August 3. 

A key proponent of the preliminary injunction will be the geofencing requirements forced upon Kalshi by the Washington State Court, as the operator has previously argued against such measures in Nevada and Michigan. 

Also in Michigan, the Commodity Futures Trading Commission (CFTC) “exercised its authority to stay an emergency rule change proposed by Kalshi,” blocking the operator from cancelling trades across the Wolverine State despite being ordered to cease such activity on June 29.

Following the denial, Kalshi representatives stated the operator is currently reviewing the CFTC’s order and continues to consider its next plan of action. Michigan regulators, including the Gaming Control Board, have still yet to comment on the matter.