Washington Judge Rejects Kalshi's Federal Defense, Grants State Injunction

KALSHI-10.49%
On Monday, King County Superior Court Judge John McHale granted Washington's preliminary injunction against prediction market platform Kalshi, finding state gambling laws are not preempted by federal law. The judge rejected Kalshi's argument that CFTC registration shields it from state enforcement, ruling that the Commodity Exchange Act does not override state authority. Kalshi must preserve records related to Washington consumers. Both parties must submit proposals for injunction terms by Aug. 3, with the judge issuing final requirements by Aug. 5.
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