Kalshi Hit With Court Order to Restrict Prediction Markets in Washington State

A King County judge has ruled against prediction market operator Kalshi, ordering it to stop offering event contracts covering sports, elections, politics, entertainment, culture, technology, and science to Washington residents. The company had argued that federal commodities regulation should override state gambling laws, but the court disagreed, finding Washington’s own consumer protection and gambling statutes still apply.

Financial and Commodity Contracts Spared

The injunction does not extend to every category Kalshi offers. Contracts tied to commodities, climate, economic indicators, and finance remain unaffected by the ruling. Washington’s attorney general framed the decision as holding the platform accountable for operating what officials characterize as unlicensed gambling activity.

Strict Geofencing Timeline Now in Place

The court’s amended order requires Kalshi to roll out basic IP-based and residency-based geofencing within days, with a more robust multi-source verification system required shortly after, both aimed at blocking Washington users from accessing the restricted contract categories. Kalshi continues to insist that federal regulators alone have authority over its exchange operations, but an appeals court declined to pause enforcement of the injunction while the broader legal dispute plays out.