Business · Ars Technica
State judge orders Kalshi to stop offering sports bets and other wagers
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A state court in Washington this week ordered Kalshi to stop offering sports gambling and a variety of other wagers on its prediction market.
Key facts
- Kalshi must implement an IP address and residency-based geofence by August 19 and a multi-source geofencing solution by September 2
- Under the court order, Kalshi could face penalties of up to $120,000 per day if it fails to complete the implementation of the ordered geofencing by September 2
- The State reserves, and does not waive, the right to seek recovery for fees and losses incurred by Washington consumers on or after September 2, 2026,” the order said
- Kalshi argues that it doesn’t have to follow state laws because the US Commodity Futures Trading Commission (CFTC) has exclusive jurisdiction over prediction markets
Summary
“The order requires Kalshi to stop offering, accepting, or facilitating wagers on sports, elections, politics, entertainment, culture, tech and science, or mentions in Washington,” said a press release yesterday from Washington Attorney General Nick Brown. Kalshi is not licensed by the state Gambling Commission and is not registered to conduct business in Washington, the court order said. Under the court order, Kalshi could face penalties of up to $120,000 per day if it fails to complete the implementation of the ordered geofencing by September 2. To get a preliminary injunction, a plaintiff must show they are likely to succeed on the merits of their claims.