Washington State Judge Orders Kalshi to Halt Sports Betting Wagers
A Washington state judge has ordered prediction market platform Kalshi to stop offering sports bets and other wagering products to users in the state. The ruling requires the company to implement geofencing controls to block Washington residents from accessing sports-related betting markets.
The order represents a significant regulatory action against prediction markets, which allow users to trade contracts on the outcomes of real-world events. Kalshi has grown to become one of the largest U.S.-based prediction markets, gaining regulatory approval to list event contracts following CFTC guidance.
The state's legal action centers on whether Kalshi's sports betting offerings fall outside the scope of permissible event contracts under existing state gambling law. The judge found that the company's sports wagering products constitute prohibited betting activity under Washington statute.
Kalshi will need to restrict access for Washington-based users until the legal questions are resolved or the company modifies its offerings to comply with state regulations.