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Kalshi has restricted Washington users from trading several major prediction-market categories after a state court ordered the CFTC-regulated exchange to curb operations while Washington’s gambling-law lawsuit proceeds.
The restrictions cover sports, elections, politics, entertainment, culture, technology and science, and mentions markets. Kalshi said it implemented the first required geofence by August 19, while commodities, climate, economics, and finance contracts remain available.
Washington Order Blocks Sports, Election and Mentions Markets
King County Superior Court Judge John McHale ordered Kalshi to use IP address and residency information to prevent Washington users from buying contracts covered by the injunction.
A more comprehensive multi-source GeoComply system must be implemented by September 2. The court also barred Kalshi from advertising the restricted contracts to Washington consumers. Existing users can still exit positions and withdraw funds.
If the September system is not complete, Kalshi faces $120,000 per day until implementation unless it submits a sworn explanation from Kalshi or GeoComply detailing the delay.
Kalshi Seeks Relief After Washington Pauses Enforcement Against OG
Kalshi returned to court on August 20 seeking to vacate portions of the amended preliminary injunction or stay its operative provisions.
The company pointed to an August 18 agreement under which Washington officials agreed not to pursue civil or criminal enforcement against North American Derivatives Exchange, which operates OG, over event contracts traded on its CFTC-regulated market while related Ninth Circuit appeals remain pending.
Kalshi argues that the agreement undermines Washington’s claim that allowing its own contracts to remain available would cause immediate and substantial consumer harm.
The attorney general’s office rejected that argument. A spokesperson said Washington is not required to prosecute every company potentially engaged in similar conduct at the same time before obtaining relief against Kalshi.
September 2 Remains Kalshi’s Next Geofencing Deadline
Washington Attorney General Nick Brown sued Kalshi on March 27, alleging violations of the state Gambling Act and Consumer Protection Act. McHale granted a preliminary injunction in July, and the Washington Court of Appeals later declined to stay it.
Kalshi maintains that its federally regulated event contracts fall under exclusive CFTC jurisdiction. The CFTC has separately asserted exclusive federal authority overprediction markets in other state disputes.
For now, the Washington restrictions remain in force. Kalshi’s next compliance deadline is September 2 while its motion for relief remains before McHale.
