King County judge rules Kalshi likely violates state gambling laws

OLYMPIA – Online prediction betting market Kalshi faces an uncertain future in Washington after a King County Superior Court Judge found that it likely violates state gambling laws.

The order by Judge John McHale follows a lawsuit filed by state Attorney General Nick Brown, who alleged that the company operates in “direct violation” of state laws that prohibit gambling, except for sports wagers placed on tribal lands.

“Kalshi has willfully ignored a Washington State Gambling Commission notice stating that offering event-based contracts is not authorized in Washington state,” McHale wrote in his ruling Monday.

McHale has granted the state’s request for a preliminary injunction, though he has granted Kalshi and the state until Aug. 3 to discuss the terms of the injunction and brief the court about potential remedies.

“This victory is the first step toward holding Kalshi accountable for their brazen violations of Washington law,” Brown said in a statement. “Kalshi padded their pockets as they promoted illegal betting on sports, elections, the total number of measles cases this year, what will witnesses say during a child trafficking hearing, and even natural disasters.”

A spokesperson for Kalshi did not immediately respond to a request for comment on Tuesday.

Founded in 2018 and launched in 2021, the site markets itself as a “regulated exchange & prediction market where you can trade on the outcome of real-world events.” While the company promotes that users can “bet on anything,” more than 90% of the activity on Kalshi and 89% of its revenue last year was from sports betting.

Last year, the company expanded its operations in Washington by allowing users to bet on how many points would be scored in a game, the point difference between teams and specific game outcomes, such as how many points a particular player would score.

The site is currently available to anyone 18 or older and can be accessed through phone apps or online. The trading volume on the site reached $23.8 billion in 2025.

While the company brands itself as a prediction market, Brown alleged its operations violate the Washington state Gambling Act and Consumer Protection Act. As he announced the lawsuit, Brown said the state would determine how much money was taken from Washingtonians as it considers how much to seek in damages.

Washington joined an increasing number of states filing legal action against Kalshi. In March, Arizona filed criminal charges against the company, alleging that Kalshi operates an illegal gambling business without a license. Those charges were permanently blocked by a federal court.

On March 20, a judge in Nevada banned Kalshi from operating in the state because it did not obtain a gambling license. The ban remains in effect.

Last week, Washington Sens. Maria Cantwell and Patty Murray and 10 other U.S. senators joined a letter pushing for further regulations on prediction markets, including a ban on “prediction contracts that resemble sports bets or casino-style gaming products.”

“The rapid expansion of sports event contracts through prediction markets and online casino-style gaming poses an existential threat to tribal sovereignty by undermining the revenue that tribes rely on for government services,” the senators wrote.