WA ยท Checked Oct. 21, 2026
Prediction market law in Washington
Court order in force
A King County court injunction bars Kalshi from offering sports, election and several other categories of event contracts to Washington users while the state's lawsuit proceeds.
Washington's Gambling Commission said in December 2025 that prediction markets are not authorized in the state. In March 2026, Attorney General Nick Brown sued Kalshi under the Gambling Act and the Consumer Protection Act. After a federal court sent the case back to state court, King County Superior Court Judge John McHale granted a preliminary injunction in July 2026. His August 12 order requires Kalshi to geofence Washington users out of sports, election, politics, entertainment and similar contracts, while economic and financial contracts may continue. Robinhood, Crypto.com's OG, Underdog and Novig have filed federal suits against Washington officials, and the state has agreed not to enforce against some of them while Ninth Circuit appeals are pending.
Timeline of state actions
Other development, Kalshi
The Ninth Circuit stayed Kalshi's appeal of the remand order until rulings in the Nevada case (KalshiEX v. Assad) take effect.
Operator lawsuit, Underdog
Underdog Exchange DCM and UDM (Underdog Predict) sued Washington officials in the Western District of Washington; the case was reassigned to Judge Thomas Zilly after Judge Robert Lasnik recused on September 14.
Source: DeFi Rate legal tracker
Other development, Kalshi
Kalshi asked Judge McHale to reconsider the amended injunction or, alternatively, his denial of a stay, citing the state's non-enforcement agreement with OG. The motion was set for a Sept. 2 decision without oral argument; no ruling had been reported as of Oct. 21, 2026.
Source: KOMO News
Other development, Crypto.com
The attorney general and Gambling Commission agreed not to pursue civil or criminal enforcement against OG over event contracts until the Ninth Circuit resolves pending preemption appeals.
Source: KOMO News
Other development, Kalshi
Kalshi began notifying Washington users that sports, election, politics, entertainment, culture, tech, science and mention markets were blocked in the state, while commodities, climate, economics and finance contracts stayed available (reported the week of Aug. 17).
Source: Sports Betting Dime
Court order, Kalshi
Judge McHale's order barred Kalshi from offering or advertising sports, election, politics, entertainment, culture, technology, science and mention contracts to Washington users. It required IP and residency geofencing by August 19 and multi-source geolocation by September 2, with possible $120,000 daily penalties.
Source: Washington State Standard
Court order, Kalshi
A Washington Court of Appeals commissioner denied Kalshi's emergency request to stay the injunction pending appeal.
Source: GeekWire
Operator lawsuit, Novig
Ludlow Exchange, the exchange behind Novig, sued Washington officials in federal court to block enforcement of the state's gambling laws against its event contracts; it filed similar suits against Massachusetts, New Mexico and New York the same week.
Source: Deadspin
Operator lawsuit, Crypto.com
North American Derivatives Exchange (Crypto.com's OG) sued the attorney general and Gambling Commission members in the Western District of Washington, citing an imminent threat of enforcement.
Source: SBC Americas
Court order, Kalshi
Judge John McHale granted the state a preliminary injunction against Kalshi, rejecting its federal preemption defense.
Source: GeekWire
Court order, Kalshi
The Ninth Circuit denied Kalshi's request to pause the state-court litigation while it appeals the remand.
Source: DeFi Rate
Court order, Kalshi
U.S. District Judge John C. Coughenour remanded the state's Kalshi case to King County Superior Court.
Operator lawsuit, Robinhood
Robinhood Derivatives sued the attorney general and the Gambling Commission in federal court in Tacoma to block enforcement against event contracts it distributes.
Source: GeekWire
State lawsuit, Kalshi
Attorney General Nick Brown sued Kalshi in King County Superior Court under the Gambling Act and the Consumer Protection Act, seeking to stop the activity, recover residents' losses and obtain civil penalties. Kalshi removed the case to federal court.
Source: Washington Attorney General
Regulator guidance
The Gambling Commission said event-based contract platforms are not authorized in Washington and pointed residents to tribal sportsbooks.
Laws and bills
No enacted laws or pending bills specific to prediction markets found.
Court cases
- State of Washington v. KalshiEX LLCInjunction granted
- State of Washington v. KalshiEX, LLCPending
- Robinhood Derivatives LLC v. GriffinPending
- North American Derivatives Exchange, Inc. v. BrownPending
- Ludlow Exchange, LLC v. BrownPending
- Underdog Exchange DCM, Inc. v. BrownPending
- Brown v. Kalshi Inc.Pending