KING COUNTY, Wash. — A King County judge has ordered prediction market platform Kalshi to stop most of its operations today, Aug. 13.
According to a press release from the Washington State Office of the Attorney General, this order states that Kalshi violated both the Washington Gambling Act and the Consumer Protection Act.
In addition, it specifically demands that Kalshi must stop taking wagers on “sports, elections, politics, entertainment, culture, tech and science, or mentions.” The company is also banned from advertising in the state, with the attorney general’s office claiming they used “deceptive” tactics.
“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,” Attorney General Nick Brown said. “As this case moves forward, we will continue to enforce Washington law and hold Kalshi accountable for misleading consumers.”
Kalshi has until next Wednesday, Aug. 19, to implement an IP address and residency based geofence and until Sep. 2 to create and incorporate a multi-source geofencing solution, according to the press release.
“Each Kalshi bet risks money, relies in part on chance, and promises a payout to winners,” the attorney general’s statement reads. “This is exactly how sportsbooks and other gambling operations function.”
Court granted a preliminary injunction less than a month ago, July 21.
Within that hearing, the King County Superior Court judge found that Kalshi “likely violating the law” and caused injury to Washington consumers. At the time, Kalshi asked to stall this injunction, but the court denied that request.