The Washington State court issued a preliminary injunction against Kalshi, ruling that its activities violate state gambling laws and that the federal Commodity Exchange Act does not preempt state law. On July 20, the Superior Court of King County, Washington, granted the state’s amended motion for a preliminary injunction against KalshiEX, LLC (Kalshi), determining that Kalshi’s operations constitute illegal activity under Washington State’s gambling laws and that the federal Commodity Exchange Act does not preempt state gambling statutes. This ruling represents a significant precedent in the jurisdictional dispute between state regulators and federally regulated prediction market platforms, following prior accusations by the CFTC Chair that states have engaged in unlawful enforcement actions against federally regulated exchanges. The court reached its decision after reviewing multiple materials, including oral arguments held on July 10. The case is docketed as 26-2-10264-3 SEA.