Kalshi Ordered to Block Washington Bets Days After CFTC Backed It

In brief

• A Washington judge has ordered Kalshi to stop offering wagers on sports, elections, politics, entertainment, culture, tech and science, and "mentions" in the state.
• Kalshi must have an IP and residency geofence running by August 19, and a multi-source solution by September 2.
• The order lands two days after the CFTC used emergency powers to order the exchange to keep operating.

A King County Superior Court judge has issued a final order requiring Kalshi to shut down most of its Washington business, after finding the exchange likely broke the state's Gambling Act and Consumer Protection Act by running an illegal gambling operation, the state attorney general's office said on Thursday.

The order bars Kalshi from offering, accepting or facilitating wagers on sports, elections, politics, entertainment, culture, tech and science, and on "mentions," where users bet on whether a public figure will say particular words. It must have an IP address and residency-based geofence in place by August 19 and a multi-source geofencing system by September 2. The attorney general's office said the categories cover a substantial part of a business "increasingly driven" by sports.

Attorney General Nick Brown said Kalshi had "gotten rich promoting wagers on sports, elections, natural disasters" and events tied to the Iran war, adding that his office would keep holding the exchange to account.