Washington Court Bans Kalshi Prediction Market Wagers

A King County Superior Court judge issued a preliminary injunction ordering the prediction market platform Kalshi to cease offering most of its wagers to users in Washington state. The ruling follows a lawsuit filed by Attorney General Nick Brown, who alleged the company operated an illegal gambling operation and ignored warnings from the state gaming commission.

Under the court order, Kalshi must implement IP and residency-based geofencing by August 19, with more robust restrictions required by September 2. The ban targets high-volume categories including politics, sports, and natural disasters, though it excludes derivatives-related categories such as finance and commodities.

Kalshi argues that the Commodity Futures Trading Commission has exclusive jurisdiction over its exchange. The company is currently considering legal options after the Washington Court of Appeals denied a request to stay the injunction.