Kalshi ordered to stop broad range of prediction markets in Washington

A Washington state judge has ordered prediction market platform Kalshi to stop offering a broad range of event contracts in the state, rejecting its argument that federal commodities law preempts Washington gambling law. King County Superior Court Judge John McHale barred Kalshi from offering contracts tied to sports, elections, politics, entertainment, culture, tech and science, and “mentions.” Contracts involving commodities, climate, economics and finance are exempt.

Injunction scope

The barred categories cover:

• sports
• elections
• politics
• entertainment
• culture
• tech and science
• “mentions”

Contracts involving commodities, climate, economics and finance are exempt from the injunction.

Compliance deadlines

Kalshi must implement initial IP-address and residency-based geofencing by Aug. 19 and a GeoComply multi-source geofencing system by Sept. 2, to prevent people in Washington from purchasing contracts covered by the injunction.

The amended order, signed Wednesday, sets the terms of a preliminary injunction McHale granted in July. The judge found that the Commodity Exchange Act does not preempt Washington gambling law and that the state had shown a likelihood of success on claims under three state laws.

Reactions and legal status

“We’re holding Kalshi accountable for running an illegal gambling operation,” Washington Attorney General Nick Brown said Thursday on X, citing a recent court ruling.

Kalshi maintains that the Commodity Futures Trading Commission has exclusive jurisdiction over its exchange. The Washington Court of Appeals denied its request to stay the injunction.