State v. operator
State of Washington v. KalshiEX LLC
King County Superior Court, Washington, 26-2-10264-3 SEA
Injunction granted
Judge John McHale granted a preliminary injunction on July 20, 2026 and set its terms on Aug. 12, 2026, barring Kalshi from offering sports, election, political, entertainment and other listed contracts in Washington with geofencing deadlines of Aug. 19, 2026 and Sept. 2, 2026. The Washington AG reports the Court of Appeals denied Kalshi a stay. Kalshi's federal remand appeal (9th Cir. No. 26-3106) is reported paused.
The question
Whether the operator's event contracts are unlicensed gambling under Washington law, or whether federal commodities law preempts the state's claims.
Washington alleges Kalshi's contracts meet the Gambling Act's definition of gambling and violate the Consumer Protection Act, citing marketing to 18- to 21-year-olds, and seeks restitution and penalties. Kalshi removed the suit the day it was filed, but the federal court remanded it.
Docket timeline
Kalshi moves for reconsideration of the amended injunction or, alternatively, of the denial of a stay.
Source: komonews.com
Court enters the amended injunction setting its terms: Kalshi must stop offering sports, election, political, entertainment and other listed contracts in Washington, geofence by Aug. 19, 2026 and deploy GeoComply by Sept. 2, 2026 (penalty of $120,000 per day absent a diligence showing).
Source: defirate.com
Judge John McHale grants the State's preliminary-injunction motion, finding the CEA does not preempt Washington gambling law; specific terms deferred.
Source: defirate.com
Ninth Circuit denies a stay pending appeal.
Source: dockets.justia.com
Kalshi appeals the remand order.
Source: dockets.justia.com
Judge John C. Coughenour grants remand, effective after 14 days.
Source: dockets.justia.com
Attorney General files suit; Kalshi removes it the same day (W.D. Wash. No. 2:26-cv-01062).
Source: atg.wa.gov
Sources
- Washington AG release: Washington sues Kalshi (2026-03-27)
- Justia docket: State of Washington v. KalshiEX, W.D. Wash. 2:26-cv-01062
- Justia docket: State of Washington v. KalshiEX, 9th Cir. 26-3106
- Vultax prediction market lawsuit tracker (updated 2026-10-19)
- DeFi Rate: Washington judge grants preliminary injunction against Kalshi (2026-07-21)
- DeFi Rate: Kalshi ordered to halt most Washington event contracts (2026-08-13)
- Washington AG release: Judge orders Kalshi to cease numerous Washington operations (2026-08-13)
- KOMO: Kalshi asks King County judge to reconsider injunction (2026-08-21)