Status
PI Active — Final Order Aug 5
PI Issued
July 20, 2026
Final Order
August 5, 2026
Court
King County Superior Court
Judge
Judge John McHale
Filed By
AG Nick Brown
Access status may change on or after August 5, 2026. Verify current access at each platform's official site before trading.
| Platform | Status | Note |
|---|---|---|
| Kalshi | Sports contracts restricted (final order Aug 5) | Sports event contracts blocked once final order takes effect. Kalshi is implementing geofencing; confirm current status at kalshi.com before trading. |
| Polymarket | Confirm at polymarket.com | Polymarket operates differently from Kalshi. Confirm geographic access at polymarket.com. Polymarket is not named in this lawsuit. |
| PredictIt | Confirm at predictit.org | PredictIt focuses on political markets and is structured as a research platform. Confirm access at predictit.org. |
| ForecastEx | Confirm at forecastex.com | ForecastEx is a newer CFTC-regulated exchange. Confirm geographic access at forecastex.com. Not named in this lawsuit. |
Access status reflects publicly available information as of August 2026. Confirm at each platform's official site before trading.
March 2026
AG Brown files lawsuit
Washington Attorney General Nick Brown sued Kalshi in King County Superior Court, alleging the platform violated the Washington Gambling Act and Consumer Protection Act by running an illegal online gambling operation.
July 20, 2026
Preliminary injunction granted
Judge John McHale of King County Superior Court found that Kalshi likely violated Washington's Gambling Act. The court rejected Kalshi's argument that its CFTC federal license preempts state gambling laws. The injunction does not take effect immediately.
August 3, 2026
Proposed terms due
Both Kalshi and the AG's office submit proposed terms for the preliminary injunction to the court — defining exactly which contracts will be restricted and how geofencing will be implemented.
August 5, 2026
Final order issued
The court issues its final preliminary injunction order. Once in effect, Kalshi will be required to block Washington residents from accessing sports-related event contracts. Confirm current access at each platform's official site.
On August 5, 2026, Judge John McHale will issue the final preliminary injunction order. The court gave both Kalshi and the Washington AG's office until August 3 to submit proposed terms — including exactly which contracts are restricted and how geofencing will be implemented.
If injunction takes full effect
Kalshi must implement geofencing to block Washington residents from sports event contracts. Access restrictions likely continue until an appellate court intervenes or Congress passes federal legislation.
If Kalshi secures a stay
Kalshi may appeal and seek a stay of the injunction. If granted, access could continue while the underlying case proceeds. Kalshi has successfully argued preemption at the federal appellate level (Third Circuit, New Jersey case).
Track the outcome: State Enforcement Actions Tracker
Washington state has banned online gambling since 2006 and has some of the most restrictive gaming laws in the country. Sports betting is legal in Washington — but only at the physical premises of tribal casinos. Online sports wagering away from tribal land is a Class C felony under the Washington Gambling Act.
Attorney General Brown's suit alleged Kalshi ran an "online betting platform" and misled consumers by advertising products as "legal betting." The court noted that Kalshi specifically targeted Washington consumers, including an advertisement featuring a text chain where one person says they "found a way to bet on the NFL even though we live in Washington" — which the court said suggested Kalshi was aware it was skirting state law.
Washington's tribal gaming sector has a direct financial interest in restricting online competitors. The state receives revenue from its gaming compact with tribes, and the tribes hold exclusive licenses for online sports wagering in the state.
Consumer Protection Act
Washington's Consumer Protection Act prohibits deceptive business practices. The AG's lawsuit includes CPA claims, which can result in penalties and consumer restitution. The lawsuit seeks repayment of money lost by Washington consumers.
Recovery of Money Lost at Gambling Act
Washington has a statute allowing recovery of money lost in illegal gambling operations. The AG's suit invokes this law as a potential basis for consumer restitution.
CFTC Account Protections
Kalshi is a CFTC-regulated exchange. Regardless of the state-level litigation, federal customer protection rules apply: customer funds must be segregated from company funds, and CFTC regulations govern how trades settle. The state lawsuit does not eliminate your federal protections.
Washington is part of a growing state enforcement wave. As of late July 2026, states have prevailed in 19 of 23 judicial decisions on whether to issue a preliminary injunction or TRO in prediction market cases. Massachusetts, Michigan, Nevada, and New York have each won court orders restricting Kalshi's operations.
At the same time, the CFTC has sued at least nine states to defend its exclusive federal authority over event contracts. In April 2026, the Third Circuit Court of Appeals ruled in favor of Kalshi in a New Jersey case — finding that CFTC-regulated sports event contracts are swaps preempted from state gambling oversight.
This contradiction — state courts blocking Kalshi while a federal appeals court allowed it — is exactly the kind of circuit split that could push the question toward the U.S. Supreme Court. A federal legislative solution (the CLARITY Act, H.R. 3633) has been proposed but has not passed as of August 2026.
19/23
States Won
Injunction decisions vs. Kalshi
5
States with Active Orders
MA, MI, NV, NY, WA
9+
CFTC State Lawsuits
CFTC defending federal authority
State Prediction Market Legal Actions Tracker
All active state enforcement actions, injunctions, and lawsuits in one place.
Nevada Prediction Markets — Court Order & What Traders Need to Know
How Nevada's earlier preliminary injunction developed and what the geofencing settlement means.
What the Minnesota Federal Injunction Actually Means
A federal judge blocked Minnesota's felony ban — the mirror-image ruling of the Washington case.
How Federal Prediction Market Regulation Works
Why Kalshi is CFTC-licensed and why states can still challenge it.
New York AG Lawsuit: What It Means for Kalshi Users
The NY AG civil complaint and what Washington's lawsuit adds to the national picture.
CLARITY Act: Impact Scenarios for Prediction Markets
How federal legislation could resolve — or complicate — the state preemption battles.
Sources: Washington Office of the Attorney General (atg.wa.gov), Washington Gambling Act (RCW 9.46), Washington Consumer Protection Act (RCW 19.86), King County Superior Court order July 20, 2026. Judicial scoreboard figure cited from attorney Daniel Wallach as reported by The Block (July 21, 2026). Platform access current as of August 2026; verify at each platform's official site before trading.
