State judge orders Kalshi to stop offering sports bets and other wagers

A Washington state court has issued an injunction, compelling online prediction market platform Kalshi to cease offering sports betting and various other wagers. The temporary injunction was handed down by King County Superior Court Judge John McHale, following a lawsuit initiated by the state of Washington. The ruling directs Kalshi to halt the acceptance, offering, and facilitation of wagers on a wide array of topics, including sports, elections, politics, entertainment, culture, technology, and science, as reported by Washington Attorney General Nick Brown in a recent press release.

Kalshi is required to implement an IP address and residency-based geofence by August 19 and a multi-source geofencing solution by September 2. Although the injunction is not a blanket ban on all Kalshi wagers, it significantly impacts a major portion of the company's revenue, which has been increasingly propelled by sports wagers in recent years.

It is worth noting that Kalshi is not licensed by the state Gambling Commission and does not hold a registration to conduct business within the state of Washington. McHale's decision was based on the court's finding that Kalshi advertisements, asserting the legality of betting activities in Washington, are likely to mislead reasonable consumers into believing such gambling operations are lawful under state regulations.