Court Decision on Federal Preemption
A Washington state court has ruled against Kalshi in its ongoing legal challenge regarding federal preemption. Judge John F. McHale determined that the Washington Gambling Act governs the company’s activities in the jurisdiction.The ruling addresses the scope of the Commodity Exchange Act and the regulatory reach of the Commodity Futures Trading Commission. The court concluded that state gambling statutes maintain authority over the platform’s operations. Kalshi’s request to displace local oversight through federal preemption was denied.
The case outcome was initially covered by iGaming Express. The decision clarifies the regulatory framework for prediction market providers operating under Washington state law.