King County Superior Court has ordered Kalshi to stop taking contracts in Washington state on sports, elections, politics, entertainment, culture, technology and science. Judge John McHale found the prediction market operator is likely violating several provisions of state law. Contracts on commodities, climate, economy and finance stay open to Washington users.
Kalshi has to have an initial geoblocking system in place by August 19 and an improved one by September 2. Missing those dates carries fines of up to $120,000 a day. The company is barred from advertising the restricted contracts to state residents. Customers can close their accounts and withdraw funds.
Attorney General Nick Brown sued Kalshi in March, arguing prediction markets are gambling dressed as financial contracts. McHale said Kalshi 'deliberately ignored' guidance from the Washington gambling commission that event contracts are not authorized in the state. Kalshi spokesperson Jacki McGavick said the CFTC holds exclusive jurisdiction over the exchange and that the company is reviewing all legal options.
The case sits inside a wider fight between prediction market operators and state regulators. Kalshi faces claims in several states while the CFTC argues federal law takes precedence. Washington is heading for trial, where Brown is seeking restitution for residents' losses and civil penalties.
