Washington State Judge Orders Kalshi to Stop Offering Event Contracts
King County Superior Court bars prediction market platform from offering sports, election, and political contracts.
Quick Look
A Washington state judge ordered prediction market platform Kalshi to halt offering sports, election, and political event contracts in the state, ruling that federal commodities law does not preempt state gambling laws.
AI-generated summary
Why It Matters
A Washington state judge granted a preliminary injunction finding federal law does not preempt state gambling law.
A Washington state judge has ordered prediction market platform Kalshi to stop offering a broad range of event contracts in the state, rejecting its argument that federal commodities law preempts Washington gambling law.
King County Superior Court Judge John McHale barred Kalshi from offering contracts tied to sports, elections, politics, entertainment, culture, tech and science, and “mentions.” Contracts involving commodities, climate, economics and finance are exempt.
“We’re holding Kalshi accountable for running an illegal gambling operation,” Washington Attorney General Nick Brown said Thursday on X, citing a recent court ruling.
Kalshi must implement IP-address and residency-based geofencing by Aug. 19 and a GeoComply multi-source geofencing system by Sept. 2 to prevent people in Washington from purchasing contracts covered by the injunction.
The amended order, signed Wednesday, sets the terms of a preliminary injunction McHale granted in July. The judge found that the Commodity Exchange Act does not preempt Washington gambling law and that the state had shown a likelihood of success on claims under three state laws.
Kalshi maintains that the Commodity Futures Trading Commission has exclusive jurisdiction over its exchange. The Washington Court of Appeals denied its request to stay the injunction.
What to Watch
AI outlook — possibilities, not facts
Kalshi must implement geofencing by Sept. 2.
Very likely · Within weeks
Open Questions
- Will Kalshi appeal to the US Supreme Court?
- How will other states approach prediction markets?
