Washington judge orders Kalshi to stop offering sports bets and other wagers
A state court in Washington has ordered Kalshi to cease offering sports betting and other wagers on its prediction market. The ruling follows a lawsuit filed by the state.
A Washington state court has ordered Kalshi, a platform for event contracts, to stop offering sports betting and a variety of other wagers on its prediction market. King County Superior Court Judge John McHale issued a preliminary injunction earlier this week in response to a lawsuit filed by the state of Washington.
The court order mandates that Kalshi cease offering, accepting, or facilitating wagers on sports, elections, politics, entertainment, culture, tech, and science within Washington. The state's Attorney General's office stated that Kalshi must implement geofencing measures by early September to block users in the state. This decision impacts a significant portion of Kalshi's business, which has seen increasing reliance on sports-related wagers.
According to the court order, Kalshi is not licensed by the state's Gambling Commission and is not registered to conduct business in Washington. Judge McHale found that Kalshi's claims of offering "legal betting" in the state were likely to mislead reasonable consumers into believing such activities were lawful under state law.
The ruling requires Kalshi to promptly implement technical barriers to restrict access for Washington residents. This injunction could affect the company's broader operational strategy and its market reach across different jurisdictions.