Kalshi Must Geofence Washington Bettors by Sept. 2 or Face $120,000 Daily Fines

Washington judge orders Kalshi to halt most prediction markets

A King County Superior Court judge, John McHale, issued a final order requiring Kalshi to cease many of its operations in Washington. The judge found the prediction market platform likely violated the state Gambling Act and the Consumer Protection Act by running an illegal gambling operation. The order, dated August 13, builds on a preliminary injunction the court granted on July 20, 2026. In that ruling, McHale rejected Kalshi's argument that federal law preempts state gambling rules. Kalshi then asked the Washington Court of Appeals to pause the injunction, but the court denied that request.

Order blocks sports, election, and politics bets but spares finance

The order directs Kalshi to stop offering, accepting, or facilitating bets on sports, elections, politics, entertainment, culture, technology, and science, plus contracts known as "mentions." It does not cover every product on the platform. Contracts tied to commodities, climate, economics, and finance may still reach Washington users, and bettors can close out positions they already hold in the blocked categories. The attorney general's office said the restricted categories form a substantial part of Kalshi's business, which has increasingly relied on sports wagers.

Kalshi must geofence Washington users by September 2

Kalshi must adopt an IP address and residency-based geofence by August 19 and a multi-source geofencing system by September 2. The system verifies a user's location before accepting a contract and aims to block anyone in Washington from reaching the restricted markets. If Kalshi misses the September 2 deadline, it faces $120,000 in daily fines. The company can also file an affidavit explaining any delay for the court to weigh.

Court bars Kalshi from advertising restricted wagers in Washington

The court also barred Kalshi from advertising the restricted wagers to Washington consumers. It ruled that the company's marketing of illegal gambling activities constitutes unfair or deceptive acts or practices. The attorney general's office cited a Kalshi advertisement in which one person texts another that they found a way to bet on the NFL even though they live in Washington. The office argued that the ad implied the service was legal when it was not.

"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", 13 August 2026. — Nick Brown, Attorney General, State of Washington

Judge cites an ignored state gambling warning

McHale wrote that Kalshi "willfully ignored" a Washington State Gambling Commission notice from December 2025 stating that event-based contracts are not authorized in the state. He concluded that the public interest and potential harm to consumers outweighed the harm to Kalshi from the injunction. The $120,000 daily penalty matches a fine that Nevada regulators separately sought against the company.

Kalshi disputes state authority and weighs its next appeal

The Washington ruling is one of several state and local challenges to Kalshi. On the same day, Baltimore sued Kalshi and Polymarket over similar gambling accusations. Multiple states argue the company's event contracts amount to illegal gambling and are not preempted by the federal Commodity Exchange Act. Kalshi maintains that federal law places it under the exclusive oversight of the Commodity Futures Trading Commission (CFTC), which recently told the company to keep operating. Kalshi has hired former U.S. Acting Solicitor General Neal Katyal for its defense, and a company spokesperson said it would keep fighting the order.

"We respectfully disagree with the court's decision and are considering all legal options", 13 August 2026. — Jacki McGavick, Spokesperson, Kalshi

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