TLDR
- A Washington court ordered Kalshi to stop offering event contracts tied to sports, elections, politics, entertainment, culture, technology, science, and mentions.
- Kalshi must introduce IP- and residency-based geofencing by Aug. 19 and a multi-source geofencing system by Sept. 2.
- The court also barred Kalshi from advertising restricted event contracts to consumers in Washington.
- Kalshi can continue offering contracts linked to commodities, climate, economics and finance in the state.
- The order follows a preliminary injunction issued in July, while Kalshi’s request to pause the restrictions was denied on appeal.
A Washington court has ordered Kalshi to stop offering several event contracts in the state. The ruling covers markets tied to sports, elections, politics, entertainment, culture, technology, science, and mention-based events.
Kalshi Faces New Washington Restrictions
The court ordered Kalshi to block Washington users from restricted markets. The company must introduce IP- and residency-based geofencing by Aug. 19. It must add a multi-source geofencing system by Sept. 2.
The order also bars Kalshi from advertising restricted contracts to Washington consumers. The court ruled that promoting unlawful gambling products may violate state consumer protection rules.
The ruling does not remove every Kalshi product from Washington. Contracts linked to commodities, climate, economics, and finance may remain available under the current order.
The restrictions form part of a preliminary injunction first issued in July. Kalshi later asked the Washington Court of Appeals to pause the order, but the court rejected that request.
State Dispute Over Event Contracts Continues
Washington is one of several states challenging Kalshi over event contracts. State officials argue that some contracts, especially sports markets, operate like gambling and must follow local betting laws.
Kalshi has argued that the Commodity Exchange Act gives the Commodity Futures Trading Commission primary authority over its markets. The company says federal oversight should take priority over state gambling rules.
The dispute centers on whether federal derivatives law prevents states from applying their gambling laws to federally regulated event-contract platforms operating within state borders directly.
Baltimore also filed a lawsuit against Kalshi and Polymarket on Thursday. The city accused both prediction market operators of offering illegal gambling products.
Washington Attorney General Nick Brown said the state would continue enforcing local law as the case proceeds. The final order keeps the restrictions in place while the wider legal dispute continues.
