Washington court orders Kalshi to halt most prediction market offerings in the state, though commodities and finance-related markets remain permitted.
Regulation & Gov ·
A Washington state court has ordered Kalshi to halt most of its prediction market offerings in the state, though the restriction does not apply to commodities, climate, economics, and finance-related markets. According to reporting, a King County judge mandated that Kalshi block sports, election, and politics wagers by August 19, creating a direct conflict with the platform's recent regulatory standing.
The order arrives shortly after the Commodity Futures Trading Commission (CFTC) approved Kalshi's application to offer binary options on economic and financial events. The court's narrower permission suggests state-level regulators view certain prediction market categories—particularly those tied to political outcomes—as falling outside acceptable scope, even as federal authorities have begun opening that door for related product types.
It remains unclear whether Kalshi intends to challenge the Washington ruling, how the carve-out for specific market types will be enforced technically, or whether other states may pursue similar restrictions. The divergence between CFTC approval and state court action underscores ongoing fragmentation in how prediction markets are regulated across U.S. jurisdictions.