Kalshi ordered to stop broad range of prediction markets in Washington
Kalshi must implement initial geofencing by Aug. 19 and a GeoComply multi-source geofencing system by Sept. 2.
The Washington state judge has ruled that Kalshi must cease operating a wide array of prediction markets within the state, dismissing Kalshi's assertion that federal commodities law supersedes Washington gambling legislation. King County Superior Court Judge John McHale prohibited Kalshi from selling contracts related to sports, elections, politics, entertainment, culture, technology, science, and "mentions."
Contracts involving commodities, climate change, economics, and finance are permitted. Washington Attorney General Nick Brown denounced Kalshi as operating an unlawful gambling venture, referencing a recent judicial decision. To halt Washington residents from acquiring the contracts under the injunction, Kalshi must deploy IP-address and residency-based geofencing by August 19 and a GeoComply multi-source geofencing system by September 2.
The revised order, issued on Wednesday, outlines the conditions of a preliminary injunction granted by McHale in July. The judge determined that the Commodity Exchange Act does not supersede Washington gambling law and that the state had a reasonable chance of success on claims based on three state laws. Kalshi contends that the Commodity Futures Trading Commission has sole authority over its exchange. The Washington Court of Appeals rejected Kalshi's appeal to suspend the injunction.
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