Prediction markets legal battleFirst of 2
Kalshi Hit With Gambling Injunction
Washington State Judge Issues Preliminary Injunction Against Kalshi as Illegal Gambling
Kalshi and Polymarket face mounting legal and regulatory scrutiny as courts and Congress simultaneously wrestle with whether sports event contracts constitute illegal gambling.
A Washington State judge issued a preliminary injunction against Kalshi, ruling that the prediction market platform constitutes illegal gambling under state law. The injunction establishes a judicial precedent relevant to on-chain prediction and event derivatives platforms including Hyperliquid's newly announced prediction market product.