Key facts
- A Washington judge ordered Kalshi to stop offering many prediction markets in the state.
- The ruling impacts contracts tied to sports, elections, and entertainment.
- The judge ruled that federal commodities law does not preempt state gambling laws.
- Contracts related to commodities, climate, economics, and finance are exempt from the order.
A Washington judge has mandated that Kalshi, a platform for prediction markets, must halt the offering of numerous contracts within the state. The ruling specifically targets contracts associated with sports, elections, and entertainment. The judge determined that federal commodities law does not supersede state gambling regulations, leading to this restriction. However, contracts that are linked to commodities, climate, economics, and finance are explicitly exempt from this order. This decision affects Kalshi's operational scope in Washington, requiring a distinction between permissible and impermissible contract types based on their subject matter.