A King County Superior Court judge has ordered KalshiEX, known as Kalshi, to stop many of its operations in Washington after finding the company likely violated
A King County Superior Court judge has ordered KalshiEX, known as Kalshi, to stop many of its operations in Washington after finding the company likely violated the Washington Gambling Act and the state Consumer Protection Act by running an illegal gambling operation.
Kalshi is registered as a federally regulated financial exchange, but has faced accusations that it functions more as a gambling platform - with all the associated risks, including addiction.
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The final order requires Kalshi to stop offering, accepting, or facilitating wagers in Washington on sports, elections, politics, entertainment, culture, tech and science, and “mentions.” The order also requires Kalshi to implement an IP address and residency-based geofence by Aug. 19 and a multi-source geofencing solution by Sept. 2.
If Kalshi fails to comply with the order by Sept. 2, it could be fined $120,000 per day until completion.
The order does not cover every wager offered on Kalshi, but it applies to a substantial part of the company’s business, which the state says has increasingly been driven by sports wagers in recent years.
“Kalshi has gotten rich promoting wagers on sports, elections, natural disasters, events related to the Iran War, and more. Under this order, Kalshi is banned from offering wagers on most of those topics in Washington,” Attorney General Nick Brown said. “As this case moves forward, we will continue to enforce Washington law and hold Kalshi accountable for misleading consumers.”
The order is part of a preliminary injunction granted in July 2026, when the judge found Kalshi was likely violating the law and that “substantial injury to Washington consumers” was likely to occur without an injunction stopping Kalshi’s activities. Kalshi asked the Washington Court of Appeals to stay the injunction, but the court denied the request.
Washington law defines gambling as “staking or risking something of value upon the outcome of a contest of chance or a future contingent event.” The state argues Kalshi’s activities fall within that definition because each bet risks money, relies in part on chance, and promises a payout to winners. The state also says Kalshi’s website and app present consumers with events to bet on and odds that dictate payouts, functioning like sportsbooks and other gambling operations.
The judge’s order also bars Kalshi from advertising to Washington consumers about the wagers covered by the injunction, including sports and elections. The court ruled that “Kalshi’s provision, marketing, and advertising of illegal gambling activities constitute unfair and/or deceptive acts or practices.”
The attorney general’s office pointed to Kalshi advertising that it allows consumers to “bet on anything” while describing its service as trading on a “prediction market” rather than “gambling.” In one Kalshi advertisement, one person texts another that they “found a way to bet on the NFL even though we live in Washington,” which the state argued suggests the company knew it was attempting to skirt state law and implied its service was legal when it was not.
The court also banned Kalshi from offering bets on “mentions,” where users can wager on whether a public figure will say particular words. The attorney general’s office said this type of betting is “rife with potential for cheating by people close to the source” and is particularly unfair to consumers.
Washington’s constitution prohibited gambling on state lands when the state was founded in 1889, and the state continues to regulate gambling activities. In 2006, the Legislature amended the 1973 Gambling Act to clarify that internet gambling is prohibited under Washington law, the attorney general’s office said.
If you or someone you know is suffering from gambling addiction or gaming disorder, contact the Washington State Problem Gambling Helpline at 1-800-547-6133.
A spokesperson for Kalshi responded to Thursday's ruling: "Kalshi is regulated by the CFTC, which has exclusive jurisdiction over our exchange. We respectfully disagree with the court’s decision and are considering all legal options."
