A local judge in Washington on Thursday ordered Kalshi to stop offering its most popular markets in the state, the latest court victory for state regulators against the prediction market operator.
King County Superior Court Judge John McHale ordered the stoppage after he last month granted a preliminary injunction sought by Washington to enforce state gambling laws against the company.
“… the State has demonstrated a well-grounded fear of immediate invasion of consumers’ legal rights … Kalshi has willfully ignored a Washington State Gambling Commission notice stating that offering event-based contracts is not authorized in Washington state,” McHale wrote in part.
The judge’s order specifically precludes Kalshi from listing markets in these categories:
- Culture
- Elections
- Mentions
- Politics
- Science
- Sports
- Tech
“Kalshi has gotten rich promoting wagers on sports, elections, natural disasters, events related to the Iran War, and more. Under this order, Kalshi is banned from offering wagers on most of those topics in Washington,” Washington Attorney General Nick Brown said in a press release. “As this case moves forward, we will continue to enforce Washington law and hold Kalshi accountable for misleading consumers.”
Banning only those categories could be interpreted as a willful evolution from court rulings in other states. Kalshi’s only recent victory came in Minnesota, in part on grounds that a new law preventing all event contracts likely violates federal jurisdiction.
Kalshi also must geofence, a red line in other states
McHale also required the company to implement full geofencing by Sept. 3. Kalshi pulled out of Nevada entirely over a similar requirement there, while ultimately giving ground in Michigan despite some outstanding technical issues.
Prediction market operators argue in court cases throughout the country that geofencing requirements in individual states would force them to violate federal requirements to offer uniform access to event contracts.
Geofencing, though, is standard practice for regulated online sports betting and iGaming companies at the state level in order to comply with the federal Wire Act.
“Regulation of gambling and regulation of futures markets are different fields of regulation. Allowing for continued State regulation of activities that fit within the legal framework of gambling in the State of Washington under RCW 9.46 does not subvert the purpose of the CEA to uniformly regulate actual futures trading … Complying with Washington law would not prevent Kalshi from complying with applicable Federal law,” McHale wrote.
If Kalshi does not meet geofencing requirements, it could face fines of up to $120,000 daily for each day it is not in compliance.
More about Washington prediction markets order
Beyond requiring the limited trading ban and geofencing, McHale also ordered Kalshi not to advertise or market its products to the state of Washington.
The judge further required the company to make “good faith efforts” to exclude Washington from any national advertising campaigns it conducts. That part of the ruling could hold particular significance in advance of the upcoming NFL football season.
That is traditionally the most active period for customer acquisition for U.S. betting operators and the time could be hyper-charged in 2026 with a prediction markets arms race added to the usual online sports betting ad blitzes.
