Trump Media and Technology Group (TMTG) has announced the termination of its agreement with Crypto.com, under which the operator’s event contracts were set to be integrated...
A King County Superior Court Judge granted a preliminary injunction against Kalshi on July 20, 2026, ruling that the Commodity Exchange Act (CEA) can’t override state gambling laws.
The lawsuit revolves around deciding whether Kalshi’s sports event contracts are regulated under federal oversight or state gambling laws, with Washington arguing that state laws preempt federal supervision. On the other hand, Kalshi claims that the CEA is above federal regulations.
Washington Attorney General Nick Brown first launched the lawsuit in March 2026, accusing the prediction platform of offering illegal online gambling to state residents, and with the latest court ruling, Kalshi is expected to remove the availability of its website for state users.
Judge McHale stated:
“It offers illegal gambling activities to Washington consumers and solicits bets from Washington consumers on its platform. The public interests at stake and potential harm to consumers in the continued operation of Kalshi’s online gambling activities in the State of Washington outweigh harm to Kalshi.”
Jacki McGavick, a spokesperson for Kalshi, commented:
“States don’t have jurisdiction to regulate prediction markets. Many courts — including the Third Circuit — have made this clear. We’re disappointed to see Washington State continue wasting taxpayer dollars.”
Additionally, the court shared that it would provide the clear terms for the injunction by August 5, 2026, while the two sides will have until August 3, 2026, to send their agreed proposed terms.
