Are Prediction Markets Legal in Washington?

Last updated August 16, 2026. Snapshot — not legal advice.

As of August 16, 2026, Washington has a restriction on prediction-market platforms currently in effect.

Prediction markets in Washington

Restriction in effect — scope narrowed by category
The state Attorney General sued Kalshi; after a federal removal and remand, a King County judge granted the state a preliminary injunction on gambling-law grounds (State of Washington v. Kalshi, July 2026). An amended and updated preliminary injunction (Judge John F. McHale, King County Superior Court No. 26-2-10264-3 SEA) bars event contracts related to sports, elections, politics, entertainment, culture, tech and science, and “mentions”, while expressly not reaching commodities, climate, economics and finance. It requires IP/residency geofencing by August 19, 2026 and multi-source GeoComply geofencing by September 2, 2026, lets users exit positions they already hold, and concludes Kalshi’s provision, marketing and advertising of illegal gambling constitute unfair and/or deceptive acts under RCW 19.86.020. The Court of Appeals denied a stay. This remains preliminary — despite press describing it as a “final order”, the order itself grants an amended motion for preliminary injunction, so it is not a merits judgment.

Litigation affecting Washington

State of Washington v. KalshiEX LLCAn amended preliminary injunction bars sports, elections, politics, entertainment, culture, tech/science and “mentions” contracts in Washington while expressly sparing commodities, climate, economics and finance; geofencing is due August 19 and September 2, 2026.
Amended preliminary injunction in effect

Sports betting & gambling in Washington

Legal — Retail Only

Legalized 2020; in-person wagering at tribal casinos only — no statewide mobile The market is regulated by the Washington State Gambling Commission. Tribal gaming: Significant (tribal-only market; relevant to IGRA).

The federal-vs-state fight

Every entry in this fight turns on the same question: does a prediction-market platform's federal regulation by the CFTC preempt a state's gambling law, or does the state retain authority to restrict it? Courts around the country are answering that question differently — sometimes for the platform, sometimes for the state — and almost every ruling so far is preliminary and under appeal. Treat this page as a snapshot, not a final word.

This page is informational, not legal advice. Nearly every litigation entry referenced here is a preliminary ruling under appeal. Always verify a platform's current, location-specific eligibility directly with the venue before relying on this page.