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Kalshi halts in Washington
A Washington state judge ordered Kalshi to stop offering a broad range of event contracts in Washington, barring contracts tied to sports, elections, politics, entertainment, culture, tech and science, and “mentions.”
“King County Superior Court Judge John McHale barred Kalshi from offering contracts tied to sports, elections, politics, entertainment, culture, tech and science, and “mentions.””
The order requires Kalshi to implement IP-address and residency-based geofencing by Aug. 19 and a GeoComply multi-source geofencing system by Sept. 2 to prevent people in Washington from purchasing contracts covered by the injunction.
King County Superior Court Judge John McHale rejected Kalshi’s argument that federal commodities law preempts Washington gambling law, finding the Commodity Exchange Act does not preempt Washington gambling law.
Washington Attorney General Nick Brown said Thursday on X, “We’re holding Kalshi accountable for running an illegal gambling operation,” as the amended order signed Wednesday set terms for a preliminary injunction granted in July.
Kalshi said it maintains that the Commodity Futures Trading Commission has exclusive jurisdiction over its exchange, and the Washington Court of Appeals denied its request to stay the injunction.
Court calls it gambling
The Washington order is described as a final halt that requires Kalshi to cease most of its operations in the state after the Washington Court of Appeals denied a request to stay the order.
A press release from Washington Attorney General Nick Brown said the order requires Kalshi to stop offering, accepting, or facilitating wagers on sports, elections, politics, entertainment, culture, tech and science, or mentions in Washington.
The court also found Kalshi ads claiming “that it offers ‘legal betting’ in Washington state are likely to mislead a reasonable consumer,” according to Ars Technica’s account of Judge McHale’s findings.
Ars Technica reported that under the court order, Kalshi could face penalties of up to $120,000 per day if it fails to complete the implementation of the ordered geofencing by September 2.
Kalshi is not licensed by the state Gambling Commission and is not registered to conduct business in Washington, the court order said, while the order still allows users to exit positions they already hold.
Deadlines and what’s next
The Washington ruling draws a line that still leaves some categories available, with Bloombergbit’s summary saying the court allowed contracts tied to commodities, climate, the economy and finance.
“The court, however, allowed Kalshi to continue offering contracts tied to commodities, climate, the economy and finance.”
Quartz’s account of the order said it “does not include all the wagers offered on Kalshi,” but it includes a substantial part of business driven by sports wagers.
The order also sets a continuing compliance timeline, with geofencing deadlines of August 19 and September 2 and a requirement that Kalshi block Washington state users from accessing restricted products through geofencing.
Beyond Washington, the dispute is framed as part of a broader federal-versus-state fight, with TradingView’s account saying Kalshi maintains that the Commodity Futures Trading Commission has exclusive jurisdiction over its exchange.
In the background of the same legal pressure, TradingView reported that the Washington Court of Appeals denied Kalshi’s request to stay the injunction, leaving the amended order in effect while Kalshi’s next steps remain tied to the state court process.
