Kalshi ordered to stop most operations in WA
The Seattle Times • • business
Key Points:
- A King County judge ordered Kalshi, an online prediction market, to cease most operations in Washington by mid-next week, ruling it operates an illegal gambling operation under state law.
- Washington Attorney General Nick Brown sued Kalshi in March for violating state anti-gambling laws, citing the company's advertising that promoted betting on various events.
- Judge John McHale mandated Kalshi stop accepting bets on sports, elections, politics, and entertainment in Washington but allowed contracts on economics, finance, climate, and commodities to continue.
- Kalshi must implement geofencing by August 19 to block Washington IP addresses from betting, with a more advanced system due by September 2, or face daily fines of $120,000; the company is also barred from advertising in the state.
- Kalshi contends it is regulated federally by the Commodity Futures Trading Commission and plans to challenge the ruling, while the CFTC has previously opposed state regulation attempts of such platforms.
