By SectorWire desk ·
The report said that a Washington judge granted a preliminary injunction after finding state claims against Kalshi were likely to succeed. Kalshi maintained that states lack jurisdiction over prediction markets, and the court planned to settle final terms separately.
The ruling supports state enforcement while the court determines the injunction’s detailed restrictions.
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The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The findings bear on state challenges to Kalshi and Polymarket's position that their contracts fall exclusively under CFTC jurisdiction.
The analysis questions Kalshi’s explanation for concentrated activity in its ether perpetual contracts.
The new contracts allow partial settlement rather than requiring players to reach the full statistical target.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The denial challenges Kalshi’s account of a tribal partnership.