Washington Judge Orders Kalshi to Halt Most Bets by Sept. 2, Faces $120,000 Daily Penalties
Updated
Updated · Gizmodo · Aug 15
Washington Judge Orders Kalshi to Halt Most Bets by Sept. 2, Faces $120,000 Daily Penalties
3 articles · Updated · Gizmodo · Aug 15
Summary
Judge John McHale’s final order bars Kalshi from offering Washington users bets on sports, elections, politics, entertainment, culture, tech and science, and requires geofencing by Sept. 2, 2026.
McHale said the platform is effectively unlicensed online gambling under Washington law: users risk money on chance for payouts, Kalshi takes a fee on each bet, and it lacks a state Gambling Commission license.
The order also found Kalshi’s advertising likely misled consumers into thinking such betting is legal in Washington, where nearly all gambling is banned outside tribal land.
Kalshi said federal law gives the CFTC exclusive jurisdiction over its exchange and that it is weighing legal options; the ruling leaves commodities, climate, economics and finance markets untouched.
The case adds to a widening state-federal clash over prediction markets, with the CFTC backing Kalshi in states including New York and Michigan while Washington and others push to enforce gaming laws.