Kalshi Washington sports bets face court-ordered restrictions
A Washington judge ordered Kalshi to block sports and other specified wagers, with geofencing deadlines beginning Aug. 19.
By James Whitfield · Staff Writer
3 min read
Kalshi Washington sports bets and several other event contracts must be blocked under a court order that sharply restricts the prediction-market platform’s business in the state. King County Superior Court Judge John McHale issued the order as part of a preliminary injunction, finding Washington likely to prevail on claims that Kalshi’s operations violate state gambling and consumer-protection laws, according to the Washington attorney general’s office.
The order requires Kalshi to stop offering, accepting or facilitating covered wagers for people in Washington. It also bars the company from advertising those wagers to Washington consumers, the attorney general’s office said in its Aug. 13 announcement.
Which Kalshi wagers are blocked in Washington?
The restrictions cover contracts tied to sports, elections and politics, entertainment, culture, technology and science, as well as “mentions” contracts, in which users wager on whether a public figure will use certain words or phrases. The order does not close Kalshi’s entire Washington operation or apply to every market on the platform, according to the state.
Washington State Standard reported that contracts concerning commodities, climate, economics and finance remain available. That reporting should be read as categories not covered by this order, rather than a broader finding that every contract in those areas is permitted.
Kalshi describes its products as prediction markets: users put money on the outcome of future events, with a payout tied to the result. Washington argued that the activity meets the state’s legal definition of gambling because users risk money on uncertain events for potential payouts, according to the attorney general’s office.
When must Kalshi block Washington users?
- By Aug. 19, 2026, Kalshi must deploy geofencing based on IP address and residency.
- By Sept. 2, 2026, it must implement a multi-source geofencing system.
- After Sept. 2, the company could face penalties of up to $120,000 a day if it has not completed the ordered controls, or it may have to explain why the work remains incomplete, Washington State Standard reported.
The order does not prevent users from closing positions they already hold, Ars Technica reported. The state reserved the right to seek recovery for fees and losses incurred by Washington consumers on or after Sept. 2, according to that report.
The litigation is not over. The attorney general’s office called the new directive a final order implementing relief in a preliminary injunction, while the underlying case remains at the preliminary stage. The Washington Court of Appeals denied Kalshi’s request to pause the injunction, the attorney general’s office said.
Kalshi disputes the ruling. A company spokesperson told Ars Technica that the Commodity Futures Trading Commission has exclusive jurisdiction over its exchange and that Kalshi is considering its legal options. McHale concluded that the federal Commodity Exchange Act does not displace Washington’s gambling law, according to Ars Technica.
Washington is continuing to seek recovery of bettors’ losses and civil penalties, Washington State Standard reported. Readers can review the Washington attorney general’s announcement and court order.
This story draws on original reporting from Ars Technica.