A King County Superior Court judge has ordered the prediction market platform Kalshi to halt most of its offerings available to users in Washington state. The ruling stems from a finding that the company likely breached the Washington Gambling Act along with the Consumer Protection Act by conducting what authorities describe as an unauthorized gambling enterprise within the state.
According to the final order issued this week, Kalshi must immediately stop providing, accepting, or enabling wagers connected to sports, elections, politics, entertainment, culture, technology, science, or related “mentions” for anyone located in Washington.
These categories represent a significant share of the platform’s activity, especially as sports-related contracts have become a major revenue driver in recent years.
Contracts tied to commodities, climate conditions, economics, and finance remain unaffected and may continue to be offered.
To enforce the restrictions, the court set strict deadlines for technical safeguards.
Kalshi must activate an IP-address and residency-based geofencing system by August 19.
A more comprehensive multi-source geofencing solution must be in place by September 2.
The company is also prohibited from advertising the restricted categories of wagers to Washington consumers, with the court determining that such marketing constitutes unfair or deceptive practices.
The decision builds on a preliminary injunction granted in July 2026.
At that time, Judge John McHale concluded that Kalshi was probably violating state law and that Washington consumers faced a substantial risk of harm if the activities continued unchecked.
Kalshi later sought a stay from the Washington Court of Appeals, but the request was denied, clearing the way for the current order to take effect.
Washington Attorney General Nick Brown welcomed the ruling.
“Kalshi has gotten rich promoting wagers on sports, elections, natural disasters, events related to the Iran War, and more. Under this order, Kalshi is banned from offering wagers on most of those topics in Washington,” Brown stated.
“As this case moves forward, we will continue to enforce Washington law and hold Kalshi accountable for misleading consumers.
”State officials have long maintained that Kalshi’s model—marketing event-based contracts as “prediction markets” rather than traditional gambling—does not exempt the platform from local regulations.
Washington has prohibited online sports betting and tightly controlled gambling activities for well over a century.
The Attorney General’s office filed suit against Kalshi in March, arguing the company was soliciting illegal bets from state residents and advertising in ways that suggested the activity was lawful.
Kalshi has consistently countered that its operations fall under federal oversight by the Commodity Futures Trading Commission (CFTC) and that state gambling statutes are preempted by federal law.
The company has faced similar legal challenges in other jurisdictions, with courts in several states issuing comparable restrictions.
The latest order does not end the litigation. Proceedings continue as both sides prepare for further stages of the case.
For Washington residents, however, mandated geofencing will soon block access to most of Kalshi’s popular event contracts. The development marks another chapter in the ongoing tension between emerging prediction-market platforms and state authorities seeking to uphold longstanding gambling restrictions.
