Kalshi Banned from Washington Betting After State Court Order

A King County Superior Court judge handed down a final order forcing Kalshi to shut down most of its Washington operations. The judge said the exchange likely violated the state's Gambling Act and Consumer Protection Act by running an illegal gambling scheme.

The order blocks Kalshi from taking, accepting, or helping place any wagers on sports, elections, politics, entertainment, culture, technology, science, or even on whether a public figure will utter a specific word. It also requires an IP‑based residency geofence by August 19 and a multi‑source geofence by September 2.

Attorney General Nick Brown noted that Kalshi built its wealth by promoting bets on sports, elections, natural disasters and Iran‑related events. His office will keep holding the firm accountable. The court also prohibited the company from advertising the restricted contracts in Washington, calling its marketing of illegal gambling unfair and deceptive. A promotional tweet that invited a friend to bet on the NFL despite living in Washington was cited as proof the firm knew it was skirting the law.

Two days earlier the Commodity Futures Trading Commission invoked emergency authority to order Kalshi to stay within the Commodity Exchange Act’s core principles, after New York sued the firm. The federal regulator argues that event contracts are interstate derivatives beyond state gaming rules, while Washington says each wager stakes money on a contingent outcome and therefore meets the gambling definition. The agency has sued nine states, starting with Illinois, Arizona and Connecticut, and continued through Wisconsin and Minnesota, and President Trump backed the agency, labeling state officials who oppose prediction markets as SCUM.

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