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Judge McHale Blocks Kalshi Contracts in Washington Pending Final Order

8/17/2026

Summary

McHale Blocks Kalshi

Judge John McHale issued a July 20 injunction finding Kalshi violated Washington gambling and consumer-protection laws.
Attorney General Nick Brown said the court classified Kalshi’s contracts as gambling under state law.
The injunction could block Washington users from Kalshi’s sports, election and other event markets.
Kalshi claims the Commodity Futures Trading Commission is the sole regulator, while officials say Washington gambling laws apply and a final order is set for August 5.

Summary

Kalshi Faces Lawsuits

Kalshi handled over $31 billion in volume in June, up more than 70 % from May’s $17.9 billion after World Cup contracts spurred trading.
In April, the Third Circuit ruled that federal law preempted New Jersey’s regulation of certain sports event contracts, while a Washington injunction and the CFTC’s lawsuit against states illustrate a split over Kalshi’s classification and exclusive jurisdiction.
State-by-state geofencing and consumer-protection rules challenge Kalshi’s federal commodities license.

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McHale Blocks Kalshi

Judge John McHale issued a July 20 injunction finding Kalshi violated Washington gambling and consumer-protection laws.
Attorney General Nick Brown said the court classified Kalshi’s contracts as gambling under state law.
The injunction could block Washington users from Kalshi’s sports, election and other event markets.
Kalshi claims the Commodity Futures Trading Commission is the sole regulator, while officials say Washington gambling laws apply and a final order is set for August 5.

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