Kalshi Ordered to Curtail Washington Operations

A United States — Superior Court of Washington for King County judge issued a preliminary injunction ordering Kalshi, a New York-based prediction market platform, to sharply curtail its operations in Washington state. Judge John McHale found that Kalshi likely violates Washington's gambling laws by offering event-based contracts on sports, elections, politics, entertainment, culture, tech, and science. The order requires Kalshi to implement geofencing to block Washington users from placing restricted bets, with an initial version due by August 19 and a more sophisticated one by September 2, or face fines of $120,000 per day. Kalshi is also barred from advertising restricted wagers to Washington consumers. The injunction stems from a lawsuit filed by Washington Attorney General Nick Brown in March. Kalshi argues it is a federally regulated exchange under the exclusive jurisdiction of the United States — United States Commodity Futures Trading Commission (CFTC), which has sided with the company and sued several states to prevent them from blocking prediction markets. The ruling is part of a broader legal battle between prediction market operators and state regulators, with similar actions in United States — Nevada, United States — Michigan, New York, and United States — Minnesota. Kalshi has appealed the injunction and is considering further legal options.