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Kalshi ordered to halt most event contracts in Washington
A King County Superior Court judge has issued a sweeping injunction against the prediction market platform Kalshi, ordering the company to halt most of its event-based contract offerings in Washington state. The ruling bars Kalshi from facilitating trades related to sports, elections, politics, entertainment, culture, technology, and science. The court found that the platform likely violated Washington’s Gambling Act and Consumer Protection Act by operating an illegal gambling business.
To enforce the ban, Kalshi must implement IP and residency-based geofencing by August 19, followed by a multi-source geolocation system by September 2. Failure to comply with these deadlines could result in penalties of $120,000 per day. While most event contracts are restricted, Kalshi may continue to offer markets involving commodities, climate, economics, and finance.
The legal battle highlights a growing conflict between state gambling laws and federal oversight. The Commodity Futures Trading Commission (CFTC) has invoked emergency authority to order Kalshi to continue operating under federal rules, arguing that the exchange has exclusive jurisdiction over such derivatives. Meanwhile, other jurisdictions are joining the challenge; Baltimore has filed lawsuits against both Kalshi and Polymarket, alleging they are running unlicensed sportsbooks.
Kalshi has disputed the ruling, maintaining that its products are federally regulated derivatives rather than traditional gambling. The company is currently considering its legal options as the regulatory landscape for prediction markets remains highly contested.
Entities
Commodity Futures Trading Commission · Kalshi · King County Superior Court · Nick Brown · Polymarket · Washington · Washington state
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 2 SOURCES] The CFTC has invoked emergency authority to order Kalshi to continue operating under federal rules. bitnewsbot.com · crypto.news
- [● 6 SOURCES] Kalshi is prohibited from offering wagers on sports, elections, politics, entertainment, culture, technology, and science in Washington. bitnewsbot.com · www.brasilemfolhas.com.br · defirate.com · cryptobriefing.com · dnyuz.com · +1 more
- [● 6 SOURCES] Washington state officials allege Kalshi is operating an illegal gambling business. bitnewsbot.com · www.brasilemfolhas.com.br · defirate.com · cryptobriefing.com · dnyuz.com · +1 more
- [● 2 SOURCES] Kalshi maintains that its contracts are federally regulated derivatives under the jurisdiction of the CFTC. www.brasilemfolhas.com.br · dnyuz.com
- [● 4 SOURCES] Kalshi must implement an IP and residency-based geofence by August 19 and a multi-source geofencing system by September 2. bitnewsbot.com · defirate.com · cryptobriefing.com · dnyuz.com
- [● 2 SOURCES] Failure to meet the geofencing deadlines could result in penalties of $120,000 per day. www.brasilemfolhas.com.br · defirate.com
- [○ 1 SOURCE] Baltimore has filed lawsuits against Kalshi and Polymarket for allegedly running unlicensed sportsbooks. wolbbaltimore.com
- [● 6 SOURCES] A Washington judge issued a preliminary injunction against Kalshi, ordering it to halt most event contracts. bitnewsbot.com · www.brasilemfolhas.com.br · defirate.com · cryptobriefing.com · dnyuz.com · +1 more