Washington judge blocks Kalshi sports contracts as Maryland enforcement proceeds
A Washington state judge granted a preliminary injunction against Kalshi on Wednesday, banning the platform from offering sports event contracts while a lawsuit proceeds. The ruling blocks Kalshi's sports markets in Washington during the pendency of the case. Maryland regulators and a federal court have acted against sports event contracts, denying Kalshi's bid to halt enforcement though specific details on active blocking remain limited. Both states reject or bypass Kalshi's reliance on CFTC registration as a federal shield.
Each new state injunction multiplies Kalshi's legal burn rate and forces active geofencing where CFTC registration once sufficed. The Washington ruling guts Kalshi's federal preemption defense on a second coast. That leaves no statewide safe harbor beyond whatever the Second Circuit might restore. Maryland's separate court action adds parallel pressure while the New York appeal is still pending.
Two binding adverse rulings could stand before a single appellate reversal. Polymarket carries identical exposure. Every state victory against Kalshi becomes a template prosecutors can file tomorrow. For traders, the pattern risks contracts being voided state-by-state after purchase. The platforms' shared survival now hinges on whether the Second Circuit revives preemption before more states copy New York's injunction denial.
Maryland to the lengthening roster of states actively blocking Kalshi's sports event contracts, alongside Washington and New York, as the platform's federal preemption defense crumbles coast-to-coast before the Second Circuit can rule.