Multiple states have obtained court orders requiring Kalshi to restrict or cease operations within their borders. This tracker covers the active enforcement actions — which states are affected, what the courts have ordered, what the deadlines are, and how the CFTC is responding.
King County Superior Court Judge John F. McHale issued an amended preliminary injunction on August 12, 2026, requiring Kalshi to stop offering sports, elections, politics, entertainment, culture, tech and science, and mention contracts to Washington residents.
The order does not cover all Kalshi contracts. Commodities, climate, economics, and finance contracts are not included in the restriction. Verify your specific contracts at Kalshi.com.
Source: Washington Attorney General press release, Aug 13, 2026 · Court order (King County Superior Court, No. 26-2-10264-3 SEA)
Rows show verified data only. Figures confirmed against official court documents and state attorney general press releases.
| State | Order Type | Geofence Deadline | Daily Penalty | CFTC Response | Access |
|---|---|---|---|---|---|
WA Washington Urgent | Amended Preliminary Injunction | August 19, 2026 Full compliance: September 2, 2026 | $120,000/day | No CFTC emergency counter-order issued (WA differs from MI) | Restricted |
MI Michigan | — | — | — | — CEA Section 8a(9) | Confirm at Kalshi.com |
NV Nevada | — | — | — | — | Confirm at Kalshi.com |
NY New York | — | — | — | — CEA Section 8a(9) | Confirm at Kalshi.com |
Verified dates are sourced from official court documents and state AG press releases. Unverified items are marked and will be updated as primary sources are confirmed.
Washington AG Nick Brown files suit against KalshiEX in King County Superior Court, alleging violations of the Washington Gambling Act and Consumer Protection Act.
Oral argument held before Judge John F. McHale on Washington's motion for preliminary injunction.
Judge McHale grants preliminary injunction — finds Kalshi likely violated Washington law and that substantial consumer injury would occur without court action. CFTC preemption argument rejected.
Parties submit proposed compliance terms to the court.
Judge McHale issues amended preliminary injunction (15 pages). Kalshi's request to keep exhibits sealed is denied. Kalshi's motion to stay the injunction pending appeal is denied.
DEADLINE: Kalshi must implement IP address and residency-based geofencing blocking Washington residents from purchasing covered contracts.
DEADLINE: Kalshi must implement GeoComply multi-source geofencing. Daily penalty of $120,000 applies until completion after this date.
The Commodity Exchange Act (CEA) grants the CFTC emergency authority under Section 8a(9) to issue directives to federally-licensed exchanges. In certain states, the CFTC has invoked this authority to direct Kalshi — a CFTC-designated contract market (DCM) — to continue fulfilling contracts and maintaining operations, even where state courts have ordered restrictions.
States argue their gambling and consumer protection laws apply to any company operating within their borders, regardless of federal licensing. Courts in Washington, Michigan, Nevada, and New York have agreed, at the preliminary injunction stage, that states are likely to prevail on the merits.
The CFTC maintains that the Commodity Exchange Act preempts state gambling laws for federally-licensed event contract markets. Under the CEA's Supremacy Clause argument, a state cannot impose requirements on a DCM that conflict with federal regulation. The CFTC has filed suits in some states to enforce this position.
The simultaneous existence of a state court injunction and a federal agency emergency directive aimed at the same company — with conflicting instructions — is rare in U.S. regulatory history. Courts at the circuit level have not yet issued definitive rulings on whether CEA preemption covers event contract markets as Kalshi operates them. Until that question is resolved, Kalshi faces a genuine legal conflict: complying with one authority may mean defying another.
For deeper background, see How can prediction markets be federally legal but state-restricted? and Why the CFTC is suing states to defend prediction markets.
Kalshi has appealed the King County Superior Court injunction to the Washington Court of Appeals. The Court of Appeals denied Kalshi's request to pause (stay) the injunction while the appeal is pending — meaning the geofencing deadlines remain in effect during the appeal.
Kalshi brought in former U.S. Acting Solicitor General Neal Katyal for its defense, signaling the company views the Washington case as a significant federal preemption test. The case is State of Washington v. KalshiEX LLC, No. 26-2-10264-3 SEA (King County Superior Court).
Source: GeekWire, August 10, 2026
