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Kalshi Ordered to Cease Most Operations in Washington State

Created at 14 Aug · 12:56 AM1 source↑ Market-relevant
IN SHORT

A Washington state judge has issued a final order requiring KalshiEX to cease many of its operations in the state, finding the prediction market likely violated state gambling and consumer protection laws by operating an illegal gambling enterprise.

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Key Numbers

August 19initial geofencing deadline
September 2multi-source geofencing deadline

Who's Involved

KalshiEX
prediction market ordered to cease operations
King County Superior Court judge
issued final order against Kalshi
Attorney General Nick Brown
stated Kalshi is banned from offering wagers on most topics in Washington

↳ Why This Matters

The ruling significantly curtails Kalshi's operations in Washington State, impacting its ability to offer prediction markets on a wide array of events and potentially setting a precedent for how such platforms are regulated under state gambling laws.

Key facts

  • KalshiEX (Kalshi) has been ordered by a King County Superior Court judge to cease many of its operations in Washington State.
  • The judge found that Kalshi likely violated the Washington Gambling Act and the Consumer Protection Act by running an illegal gambling operation.
  • The order prohibits Kalshi from offering, accepting, or facilitating wagers on sports, elections, politics, entertainment, culture, tech, and science within Washington.
  • Kalshi must implement IP address and residency-based geofencing solutions by September 2.
  • The prediction market is also banned from advertising the prohibited wagers to Washington consumers.
  • The court ruled that Kalshi's activities constitute unfair and/or deceptive acts or practices.
  • A Washington state judge has issued a final order requiring KalshiEX, a prediction market, to cease many of its operations within the state. The court found that Kalshi likely violated the Washington Gambling Act and the Consumer Protection Act by operating an illegal gambling enterprise.

    The order specifically prohibits Kalshi from offering, accepting, or facilitating wagers on sports, elections, politics, entertainment, culture, tech, and science for Washington residents. The company must implement IP address and residency-based geofencing solutions by September 2 to comply with the ruling.

    Attorney General Nick Brown stated that Kalshi has profited from promoting wagers on a wide range of events, and this order bans them from offering most of these in Washington. The court also ruled that Kalshi's provision, marketing, and advertising of these activities constitute unfair and/or deceptive acts or practices. Kalshi is further banned from offering bets on 'mentions,' such as whether a public figure will say particular words.

    The judge had previously granted a preliminary injunction in July 2026, finding that Kalshi's activities fell within Washington's definition of gambling and that substantial injury to consumers was likely without such an injunction. Kalshi's request to stay this injunction was denied by the Washington Court of Appeals.

    Frequently asked questions

    Kalshi is a prediction market that allows users to trade contracts based on the outcome of future events, such as sports, politics, and economic indicators.

    A judge found that Kalshi was likely operating an illegal gambling enterprise in violation of Washington's Gambling Act and Consumer Protection Act.

    The order prohibits wagers on sports, elections, politics, entertainment, culture, tech, and science, as well as bets on 'mentions' of specific words by public figures.

    What Happens Next

    01Kalshi must implement a multi-source geofencing solution by September 2.
    02The case will continue to move forward to further enforce Washington law.

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    Cadence

    How It Developed

    A King County Superior Court judge issued a final order against KalshiEX.
    The order requires Kalshi to stop offering wagers on sports, elections, politics, entertainment, culture, tech, and science in Washington.
    Kalshi must implement IP address and residency-based geofencing by September 2.
    The judge found Kalshi likely violated the Washington Gambling Act and Consumer Protection Act.
    Kalshi is also banned from advertising these wagers to Washington consumers.
    The court ruled Kalshi's activities constitute unfair and/or deceptive acts or practices.
    Kalshi is banned from offering bets on 'mentions,' such as whether a public figure will say particular words.

    Sources

    T1
    Kalshi Ordered to Cease Most Operations in Washington StateThe New York Times
    T2
    Judge orders Kalshi cease numerous Washington operationsatg.wa.gov

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