Washington judge orders Kalshi to cut most markets

A King County Superior Court judge has ordered Kalshi to stop offering most of its event contracts in Washington, after finding the company was likely violating state gambling law. The final order bars markets tied to sports, elections, politics, entertainment, culture, technology, science and “mentions”, but allows commodities, climate, economics and finance contracts to remain available.

As reported in July, Judge John McHale had already granted a preliminary injunction in the case, and Kalshi’s bid to pause it was denied on appeal. The new order turns that earlier ruling into a detailed compliance timetable for the company.

Kalshi must put in place an IP address and residency-based geofence by Aug. 19, then complete a broader multi-source geofencing system by Sept. 2. GeekWire reported that missing that deadline could bring $120,000 in daily fines, unless the company explains why the fix is not yet complete.

The order also bars Kalshi from advertising the restricted wagers to Washington consumers. Users may still close out positions they already hold in the prohibited categories.

The court ruled that Kalshi’s marketing of illegal gambling activities amounted to unfair or deceptive practices. The attorney general’s office said the judge found the company’s bets fall within Washington’s gambling definition because each one risks money, depends in part on chance and pays out winners.

The order also places the case in Washington’s longer history of gambling limits, noting that the state has tightly regulated gambling since statehood, banned online gambling in 2006 and later created a limited sports-wagering exception on tribal lands in 2020. According to the attorney general, Kalshi had continued to offer events-based contracts in the state even after a December 2025 notice saying such markets were not authorized there.

Attorney General Nick Brown said Kalshi had “gotten rich” promoting wagers on sports, elections and other topics, and said his office would keep enforcing state law as the case moves forward. Kalshi spokesperson Jacki McGavick said the company disagreed with the ruling and was considering legal options.