A Washington state court issued a final ruling on Aug. 14 ordering Kalshi to stop offering event contracts in the state across sports, elections, politics, entertainment, culture, technology, science and "person mentions," saying they are likely to violate state gambling rules. Kalshi must implement IP- and residence-based geoblocking by Aug. 19, then upgrade to a multi-source geofencing system by Sept. 2 to keep Washington users out of restricted markets, and is barred from marketing the products to state consumers. The court declined to restrict all of Kalshi's business: contracts tied to commodities, climate, economy and finance may remain available. The ruling stems from a lawsuit Washington filed earlier; Kalshi's bid to stay the injunction was rejected by the state's Court of Appeals. Meanwhile, U.S. states and local governments are questioning whether Kalshi's event contracts constitute illegal gambling, and Kalshi maintains that the CFTC should regulate its business under federal law. On the same day, Baltimore sued both Kalshi and Polymarket over alleged illegal gambling products, deepening the regulatory pressure.
Final ruling against Kalshi
A Washington state court on Aug. 14 ordered Kalshi to stop offering event contracts in the state across categories such as sports, elections, politics, entertainment, culture, technology, science and "person mentions." The court said Kalshi is likely violating Washington's gambling rules.
Compliance timeline
Kalshi must implement IP- and residence-based geoblocking by Aug. 19, and upgrade to a multi-source geofencing system by Sept. 2, the court said. That is meant to keep Washington users from reaching restricted markets. The platform is also barred from promoting the wagers to consumers in the state.
Not all of Kalshi's products are affected. Contracts related to commodities, climate, the economy and finance can still be offered in Washington.
Background and wider pressure
The ruling follows a lawsuit filed earlier by Washington state. Kalshi asked to pause the injunction, but the Washington Court of Appeals rejected that request.
Separately, multiple state and local governments are questioning whether Kalshi's event contracts amount to illegal gambling under state law. Kalshi insists its business falls under the federal oversight of the Commodity Futures Trading Commission (CFTC).
On the same day, Baltimore, the largest city in Maryland, sued Kalshi and Polymarket, alleging they provide illegal gambling products. The regulatory pressure on Kalshi from states and localities keeps growing.
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