Judge Rules Kalshi Likely Runs Unlicensed Gambling Site in Washington

A King County judge granted a preliminary injunction against Kalshi, finding the prediction market operator likely violates Washington's online gambling laws.

by - Saturday, July 25th, 2026 4:00

Courtroom with gavel and laptop showing prediction market charts, representing legal ruling against Kalshi

A King County Superior Court judge has issued a preliminary injunction against prediction market operator Kalshi, finding the company likely violates Washington state law by running an unlicensed online gambling operation.

Judge John McHale granted the injunction on Monday, July 21, following a lawsuit brought by Washington Attorney General Nick Brown. The court found that Washington is likely to succeed in proving Kalshi constitutes an illegal online gambling site under state law – a category of operation prohibited in Washington.

Portrait of Nick Brown, Washington Attorney General, wearing a grey blazer and blue tie
Washington Attorney General Nick Brown.

Brown discussed the ruling in an interview with KUOW’s Soundside programme, characterising the case as fundamentally a contest over definitions. ; Washington’s position is that whatever the federal characterisation, .

Preemption Argument Rejected

Central to the ruling’s significance is the injunction and the judge’s finding. According to research into the court record, McHale found against Kalshi’s contention , finding that Kalshi can comply with both federal market rules and Washington’s gambling restrictions simultaneously. .

. , . , .

Next Steps

; , .

, . .

Source: KUOW Soundside

Renata Kovacs

Renata Kovacs has spent the better part of a decade following the regulatory shifts and licensing battles that define how gambling markets open, close, and evolve across Europe and beyond. She came up through the legal and compliance side of the industry before shifting her focus to journalism and analysis, giving her a perspective that sits closer to the operator room than the press box. Her coverage tends to cut through the noise and get straight to what a regulatory change actually means for the businesses and players involved.