Are Prediction Markets Legal in Washington?

Last verified: 2026-07-15

Restricted Scope: Sports contracts only

Restricted right now — a court order limits sports contracts in Washington

Right now, Washington has a court order or enforcement action in place that blocks or limits some contract types on major prediction-market platforms. Appeals are typically still pending, so this status can change.

This is not legal advice. Prediction-market legality is contested and changes quickly. This page reflects publicly reported facts as of the last-verified date above and links to a primary or trade-press source below. Consult a licensed attorney in Washington and check each platform's own current state-availability page before trading.

What This Means for Kalshi vs. Polymarket in Washington

The dispute in Washington is specifically about sports-related contracts (who wins a game, a spread, a player prop) — on both Kalshi and Polymarket. Non-sports contracts (politics, economics, weather, entertainment) from either platform are not the subject of this fight in Washington. Kalshi and Polymarket US are both CFTC-regulated exchanges, and neither has a legal advantage over the other in this dispute — state actions in this category name multiple platforms at once, not one company exclusively.

The Full Picture in Washington

AG Nick Brown sued Kalshi (Mar. 28, 2026) seeking a permanent injunction; Robinhood and Kalshi each filed preemptive federal suits against the state. The Ninth Circuit denied Kalshi’s request for a stay pending appeal, clearing a path for Washington’s state-court enforcement to proceed.

Source: DeFi Rate — Ninth Circuit denies Kalshi stay Last verified: 2026-07-15

Why Is This Even Contested? The Federal-vs-State Fight

Prediction markets sit at the intersection of two legal regimes that currently disagree. Kalshi and Polymarket US register their contracts with the CFTC as swaps or event contracts on a federally designated exchange, and argue that federal law preempts conflicting state gambling law. State gaming regulators counter that sports-related contracts — betting on who wins a game, a point spread, or a player prop — are functionally sports betting, which most states require a separate license to offer. Federal appellate courts are currently split: the Third Circuit ruled for Kalshi on preemption grounds (April 6, 2026), while a federal judge in the Southern District of New York ruled against Kalshi on the same underlying question (July 8, 2026). This is genuinely unresolved law, not a settled "CFTC means legal everywhere" fact — treat any claim that federal registration alone guarantees legality in every state with skepticism.

Dispute is about sports-related event contracts specifically (who wins a game, point spreads, player props). Non-sports event contracts (politics, economics, weather, entertainment) are not the subject of the dispute in this state.

Washington-Specific Timeline

Entries from our full regulatory timeline that specifically reference Washington.

2026-03-28

Washington AG sues Kalshi

AG Nick Brown files suit against Kalshi for allegedly offering illegal gambling in Washington.

Source: Washington State Standard

Frequently Asked Questions

Is Kalshi legal in Washington?
Right now, Washington has a court order or enforcement action in place that blocks or limits some contract types on major prediction-market platforms. Appeals are typically still pending, so this status can change. AG Nick Brown sued Kalshi (Mar. 28, 2026) seeking a permanent injunction; Robinhood and Kalshi each filed preemptive federal suits against the state. The Ninth Circuit denied Kalshi’s request for a stay pending appeal, clearing a path for Washington’s state-court enforcement to proceed.
Is Polymarket legal in Washington?
The same status applies to Polymarket as to Kalshi in Washington -- state actions in this category virtually always name multiple platforms rather than one exclusively. The dispute in Washington is specifically about sports-related contracts (who wins a game, a spread, a player prop) — on both Kalshi and Polymarket. Non-sports contracts (politics, economics, weather, entertainment) from either platform are not the subject of this fight in Washington. Kalshi and Polymarket US are both CFTC-regulated exchanges, and neither has a legal advantage over the other in this dispute — state actions in this category name multiple platforms at once, not one company exclusively.
Is there a court order blocking prediction markets in Washington?
AG Nick Brown sued Kalshi (Mar. 28, 2026) seeking a permanent injunction; Robinhood and Kalshi each filed preemptive federal suits against the state. The Ninth Circuit denied Kalshi’s request for a stay pending appeal, clearing a path for Washington’s state-court enforcement to proceed.
Where can I check the latest prediction market status for Washington?
This page cites its primary source directly (DeFi Rate — Ninth Circuit denies Kalshi stay) and was last verified 2026-07-15. For the full 51-row tracker and the complete regulatory timeline, see the Odds Reference prediction markets legal tracker -- this is a fast-moving area and any single page, including this one, can lag the latest court filing.

Related Reading

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