Washington judge orders prediction market Kalshi to halt most betting activities

A King County Superior Court judge ordered online prediction market Kalshi to stop most of its betting activities in Washington State by early next week, finding the platform likely breaches several state anti-gambling statutes. The ruling follows a lawsuit filed in March by Attorney General Nick Brown, who alleged that Kalshi’s advertising, which claimed users could “bet on everything,” demonstrated the company’s gambling nature.

Judge John McHale wrote that Kalshi operates an online betting platform and must cease accepting wagers on sports, elections, politics, entertainment, culture, technology and science. The company may continue offering contracts related to economics, finance, climate and commodities. Kalshi is required to block Washington-based IP addresses by August 19 and install more advanced geofencing by September 2, or face a daily fine of $120,000. The court also barred the firm from advertising or marketing within the state and mandated that existing Washington customers be allowed to close accounts and withdraw funds.

Kalshi has maintained that it is a federally regulated prediction market overseen by the Commodity Futures Trading Commission (CFTC). A company spokesperson said the platform differs from state-regulated sportsbooks and casinos and expressed confidence in its legal position. The CFTC has previously warned states against regulating such markets.

Attorney General Brown said the company has profited from wagers on a wide range of events and pledged continued enforcement of Washington law.

Kalshi did not immediately respond to a request for comment.