Kalshi has launched its U.S. Midterms Hub as the prediction markets platform seeks to position itself as the primary source for election odds ahead of November's midterm elections. The new hub displays real-time market odds for individual U.S. Senate and House races, combining live betting prices with polling averages, Federal Election Commission fundraising data, and curated news to offer a comprehensive snapshot of each race. According to Kalshi's press release, the hub is designed as the one-stop-shop for state and federal election forecasting, providing users with a live snapshot of where speculators are willing to place their bets at any given time. The outcomes are based on the latest odds for each market and across a map of the U.S., with the hub also featuring polling averages to show how prediction market odds compare with statistical surveys of voters.
A Washington state judge has granted a preliminary injunction that will block Kalshi from offering sports-related prediction markets to residents, adding another court setback for the federally regulated event-contract platform. King County Superior Court Judge John McHale granted Washington's request on July 20, finding that the state was likely to succeed in its case against Kalshi. However, the order will not take effect before August 5, with the court reviewing additional submissions from both sides by August 3 before restrictions begin. The ruling centers on a growing legal dispute over whether sports event contracts fall exclusively under federal commodities law or can face state gambling rules. According to the Attorney General's Office, the court found Kalshi likely violated Washington's Gambling Act and Consumer Protection Act, operating an illegal online gambling business within the state.
Kalshi has dramatically escalated its lobbying efforts, spending $990,000 on federal lobbying in the first half of 2026, nearly matching its total spending for all of 2025. The company's direct lobbying alone nearly matches the American Gaming Association's $1.39 million commitment in 2026, up 30% from the same period last year. Including outside firms, Kalshi's total lobbying spending nears $1.8 million, a record six-month figure disclosed in federal filings. The company deploys seven lobbying firms, including its in-house team, and has hired former Biden and Obama administration officials to widen its reach. Kalshi also counts Donald Trump Jr. as a paid advisor as it races to counter the casino industry on Capitol Hill. Meanwhile, the gambling side is spending more, with the Cherokee Nation spending $600,000 on gaming interests, while Polymarket maintains a lighter presence with a single firm spending $180,000.
Judge McHale ruled that the Commodity Exchange Act does not prevent Washington from applying its gambling laws to Kalshi. The state sued the company in March, accusing it of offering and advertising unlicensed online betting products covering sports, elections and other real-world events. The court found that consumer protection concerns supported temporary restrictions while the case continues, with McHale writing that Kalshi "offers illegal gambling activities to Washington consumers." A company spokesperson told The Block that "States don't have jurisdiction to regulate prediction markets," pointing to decisions including a Third Circuit ruling that favored federal oversight. The Washington Attorney General's Office originally sought to stop Kalshi from operating in the state and sought restitution for affected consumers and civil penalties. The Washington court concluded at this preliminary stage that the Commodity Exchange Act does not preempt Washington's gambling laws, allowing the state's case to proceed.
Kalshi is seeking regulatory approval from the Commodity Futures Trading Commission to expand its perpetual contracts beyond crypto, with plans to include precious metals trading for gold, silver and platinum. According to Bloomberg, the platform is seeking approval for popular financial derivative instruments that never expire for these metals. This expansion comes as Kalshi has posted $31 billion in total notional trading volume in June, representing a more than 70% jump from May, with sports contracts accounting for around 85% of its trading. The company reported that World Cup-specific volume on its platform accounted for $22.42 billion. The new commodity trading plans represent a significant diversification from Kalshi's traditional focus on event markets and political forecasting, as the platform seeks to compete more directly with major digital asset trading platforms.
The legal disputes come as trading activity on prediction markets has grown sharply, with Kalshi recording about $33 billion in monthly trading volume in June, compared with a combined $13.95 billion for Polymarket and its U.S. platform. The Washington order does not immediately shut down Kalshi's sports contracts in the state, with the case continuing as Kalshi argues that federal derivatives law protects its products from state gambling regulation. The company has also expanded beyond traditional event markets, exploring crypto perpetual futures and now commodity trading as it seeks to compete more directly with major digital asset trading platforms. The outcome of the appeal could influence how prediction markets are regulated across the United States, particularly as the sector continues to expand into sports, politics, and other real-world events.
