Washington the Latest State to Shut Down Kalshi
Jesse M. Cox Published 17/08/2026
A King County, Washington, judge has issued a preliminary injunction requiring prediction market site Kalshi to geofence many of its event contracts in the state. Among the event contracts that will be either limited or prohibited are sports, elections, politics, entertainment, culture, technology, and science contracts. Commodity, climate, economic, and financial event contracts will remain available to Washington users.
Kalshi was given 19 days to geofence its product in Washington or face daily fines. The site must be fully geofenced by September 2. Washington is the fifth state to win a court battle requiring Kalshi to implement geofencing of its product. Washington, Michigan, Utah, and New York are the other states.
Washington judge finds that Kalshi ignored notices to shut down
King County Superior Court Judge John McHale found that Kalshi "willfully ignored" notices from the Washington State Gambling Commission declaring event-based contracts unauthorized. The order prohibits Kalshi from “marketing, advertising, promoting, conducting, operating, facilitating, distributing, offering, or accepting event contracts, or other contracts, instruments” for wagers on sports, elections, politics, culture or technology and science. The order does not apply to wagers on commodities, climate, economics or finance.
The issuing of the injunction came following a lawsuit filed by Washington Attorney General Nick Brown. Brown's lawsuit alleged that Kalshi operates in “direct violation” of state laws that prohibit gambling. The lone exception is for the placing of sports wagers on tribal lands.
“Kalshi has gotten rich promoting wagers on sports, elections, natural disasters, events related to the Iran War, and more," Brown said in a statement, according to reporting by the Spokane Spokesman-Review. “As this case moves forward, we will continue to enforce Washington law and hold Kalshi accountable for misleading consumers.”
Under this order, there is a ban on Kalshi offering wagers on most topics in Washington. Brown's lawsuit was a March filing. It alleged that Kalshi had illegally skirted “some of the most restrictive gambling laws in the United States.”
Kalshi argues that a state cannot overrule a federal regulator
Kalshi's response to Judge McHale's ruling is familiar. It's the same excuse prediction market sites are citing in similar cases in other states. They insist that state gambling regulators have no legal right to control prediction markets.
The company is “regulated by the CFTC, which has exclusive jurisdiction over our exchange," Jacki McGavick, a Kalshi spokesperson, wrote in an email to the Spokesman-Review.
“We respectfully disagree with the court’s decision and are considering all legal options.”
In other states in which Kalshi is facing a similar ruling, the company is getting advice from the Commodity Futures Trading Commission (CFTC) to ignore the courts and to continue to operate. The CFTC is the federal regulator for all prediction market sites.
Washington is the latest state to bring the hammer down on Kalshi
In July, McHale's ruling was that Kalshi had “willfully ignored a Washington State Gambling Commission notice. That notice stated that "offering event-based contracts is not authorized in Washington state.”
In his preliminary injunction order, McHale ruled that Kalshi must institute an IP address and residency-based restriction system by August 19. Additional location-based restriction systems must be in place by Sept. 2.
Washington is the latest state to beat Kalshi in court. Nevada, Michigan, Utah, and New York have also won court battles. Each state now requires Kalshi to implement some level of geofencing on its product. In Nevada, the state won an outright ban on Kalshi.