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Kalshi ordered to halt most event contracts in Washington state
A Washington state judge has issued a final order requiring Kalshi to halt most of its event contract operations within the state. The ruling, which follows a preliminary injunction, prohibits the prediction market platform from offering wagers related to sports, elections, politics, entertainment, culture, technology, science, and “mention markets.” The court found that Kalshi likely violated Washington’s Gambling Act and Consumer Protection Act by operating an unlicensed gambling business.
To comply, Kalshi must implement an IP and residency-based geofence by August 19 and a multi-source geofencing system by September 2. Failure to meet these deadlines could result in penalties of $120,000 per day. While the state order restricts most event-based trading, Kalshi may continue offering contracts related to commodities, climate, economics, and finance.
In response to the state-level restrictions, the Commodity Futures Trading Commission (CFTC) has invoked emergency authority to order Kalshi to continue operating under federal rules to ensure market stability. This highlights an ongoing legal conflict between state regulators and federal agencies over whether prediction markets are regulated derivatives or illegal gambling.
Simultaneously, the CFTC has launched an inquiry into “mention markets”—where users bet on specific words spoken by public figures—due to concerns regarding potential market manipulation. Additionally, Baltimore has filed lawsuits against both Kalshi and Polymarket, alleging they are running unlicensed sportsbooks and violating consumer protection laws.
Entities
Commodity Futures Trading Commission · John McHale · Kalshi · King County Superior Court · Nick Brown · Polymarket · Washington · Washington state
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] A teleprompter operator for President Trump used Kalshi to bet on the president's specific word choices. www.ksfr.org · www.kpbs.org · www.europesays.com
- [● 5 SOURCES] Kalshi continues to allow mention markets for political events, earnings calls, and live news broadcasts. www.ksfr.org · www.kpbs.org · www.europesays.com
- [● 6 SOURCES] Kalshi has removed all sports-related mention markets from its platform until further notice. www.ksfr.org · www.kpbs.org · www.europesays.com · awfulannouncing.com
- [● 2 SOURCES] The Commodity Futures Trading Commission is pursuing the inquiry into mention markets. www.ksfr.org · www.kpbs.org
- [● 6 SOURCES] Federal regulators have launched an inquiry into 'mention markets' on prediction market platforms. www.ksfr.org · www.kpbs.org · www.europesays.com · awfulannouncing.com
- [● 3 SOURCES] The CFTC has invoked emergency authority to order Kalshi to continue operating under federal rules. bitnewsbot.com · crypto.news
- [● 9 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 · dnyuz.com · www.staradvertiser.com · +2 more
- [● 6 SOURCES] Washington state officials allege Kalshi is operating an illegal gambling business. bitnewsbot.com · www.brasilemfolhas.com.br · defirate.com · dnyuz.com · www.staradvertiser.com
- [● 7 SOURCES] Kalshi maintains that its contracts are federally regulated derivatives under the jurisdiction of the CFTC. www.brasilemfolhas.com.br · dnyuz.com · gizmodo.com · wolbbaltimore.com · bitnewsbot.com
- [● 5 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 · dnyuz.com
- [● 3 SOURCES] Failure to meet the geofencing deadlines could result in penalties of $120,000 per day. www.brasilemfolhas.com.br · defirate.com · gizmodo.com
- [● 2 SOURCES] Baltimore has filed lawsuits against Kalshi and Polymarket for allegedly running unlicensed sportsbooks. wolbbaltimore.com · www.gamblingnews.com