A Washington state judge has ordered Kalshi to stop offering, accepting, or facilitating bets on sports, elections, politics, entertainment, culture, tech, and science, as well as bets on public figures' statements. The ruling, issued by King County Superior Court Judge John McHale, found that Kalshi likely violated the state's gambling laws.
The decision requires Kalshi to implement a geolocation system by August 19 and a more robust solution by September 2, or face a $120,000 daily fine. The platform is still allowed to offer bets on commodities, climate, economy, and finance in the state.
Regulatory Dispute
The ruling contradicts a statement made by the Commodity Futures Trading Commission (CFTC) the previous day, which encouraged Kalshi to continue operating without interruption. The CFTC's chairman, Michael Selig, argued that the Congress never intended for derivative markets to be regulated by a patchwork of state gambling laws.
Ongoing Litigation
Kalshi is also facing a lawsuit from the state of New York, which seeks to shut down the platform nationwide. The company has stated that it is considering all possible appeals. The case highlights the ongoing debate over the regulation of predictive markets and the distinction between financial instruments and gambling.
