Washington Judge Orders Kalshi to Stop Most Prediction-Market Betting in the State

A King County Superior Court judge has ordered Kalshi to halt most prediction-market contracts for Washington residents, ruling the exchange likely ran afoul of the state’s gambling and consumer-protection laws.

The final order, issued Thursday and announced by Attorney General Nick Brown’s office, prohibits Kalshi from accepting wagers on sports, elections, politics, entertainment, culture, technology, science, and so-called “mentions” contracts, bets on whether a public figure will say particular words. The court carved out commodities, climate, economics and finance contracts, which Kalshi may keep offering in the state, according to The Block.

Kalshi must implement an IP-address and residency-based geofence by August 19 and a multi-source geofencing system by September 2. The order also prohibits the exchange from advertising the covered contracts in Washington, ruling that marketing illegal gambling amounted to “unfair and/or deceptive acts or practices,” Decrypt reported.

Brown said Kalshi had “gotten rich promoting wagers on sports, elections, natural disasters” and events tied to the Iran war. His office, he said, would keep holding the exchange to account.

The AG’s complaint cited a Kalshi promotional tweet in which a person texts a friend that they had “found a way to bet on the NFL even though we live in Washington.” The state argued the tweet showed the company knew it was working around state law.

Thursday’s order builds on a preliminary injunction granted in July, in which the judge found “substantial injury to Washington consumers” was likely without one. Kalshi asked the Washington Court of Appeals to stay that injunction. The court refused.

The ruling arrives as tension between state gambling regulators and the Commodity Futures Trading Commission intensifies. The CFTC maintains that event contracts are interstate derivatives beyond the reach of state gaming law. Washington sees it differently: each Kalshi bet stakes money on a contingent event and therefore meets the statutory definition of gambling.

Two days before the Washington order, the CFTC invoked emergency authority to direct Kalshi to keep trading in line with the Commodity Exchange Act’s core principles. The move came after the exchange itself flagged a market emergency in the wake of New York’s lawsuit. The agency has separately sued nine states, including Illinois, Arizona, Connecticut, Wisconsin and Minnesota, over the preemption question.

The conflict reaches well beyond Washington and the federal regulator. Baltimore sued Kalshi and Polymarket on Thursday, accusing both of running illegal gambling operations. The complaint names Coinbase, Robinhood and Webull as well. That case rests on the same state-law theory Washington’s judge adopted.

Open questions remain. Whether Kalshi has begun geofencing Washington users. The status of any further appeal beyond the denied stay. And the precise definition of a “mentions” contract under the order’s bar.