A Washington state judge has ordered Kalshi, an exchange that allows users to trade on the outcome of events, to cease offering sports bets and other wagers within the state. Superior Court Judge J. Robert Mc Hale ruled that Kalshi's operations likely violate Washington's gambling and consumer protection laws.

Mc Hale described Kalshi as an "online betting platform" that functions as a "prediction market," enabling users to wager on diverse topics including sports, political elections, and even public figures' statements. The judge found Kalshi's activities constituted "unfair and/or deceptive acts or practices" under Washington law. Washington Attorney General Bob Ferguson praised the ruling, stating Kalshi "has gotten rich promoting wagers on sports, elections, natural disasters, events related to the Iran War, and more."

Kalshi, however, maintains that it is regulated by the US Commodity Futures Trading Commission (CFTC), which it claims has exclusive jurisdiction over prediction markets. The company stated it "respectfully disagree[s] with the court’s decision and are considering all legal options." This legal dispute mirrors similar battles where platforms argue federal oversight preempts state regulations.