A Washington state judge has ordered prediction market Kalshi to block user access to sports, elections, politics, entertainment, culture, technology and science markets by August 19. The company must implement IP and residency-based geoblocking by that date, then deploy a multi-source GeoComply solution by September 2.
Washington is the third state to block Kalshi after Nevada and Michigan. Judge John McHale ruled last month that the company operates an illegal online betting platform. State Attorney General Nick Brown, who filed the lawsuit in March, said Kalshi got rich promoting wagers on sports, elections, natural disasters and war events in Iran, and is now barred from offering most of those markets in Washington.
The federal Commodity Futures Trading Commission opposes state court orders. On Thursday the CFTC issued an emergency directive ordering Kalshi not to comply with state injunctions — the second such order in 30 days after a gap since 1980. CFTC Chair Michael Selig said states cannot force a registered market to violate its obligations, and federal law bars discriminating against state residents.
Kalshi chief legal officer Robert DeNault called the situation an 'impossible position', forcing the company to choose between obeying states or the federal regulator.
Separately, Baltimore sued Kalshi and Polymarket for running illegal bookmaking operations. Mayor Brandon M. Scott said the companies operate as bookies without licences and expect a new label to put them above the law. The suit seeks civil penalties, injunctive relief, consumer restitution and disgorgement of illegal profit.
