King County Superior Court Restricts Kalshi from Offering Most Prediction Market Wagers in Washington

A King County Superior Court judge has issued a final order requiring KalshiEX (Kalshi) to cease many of its Washington operations after finding that the company likely violated the Washington Gambling Act and the Consumer Protection Act by running an illegal gambling operation in the state, as reported by Indian Gaming.

The order requires Kalshi to stop offering, accepting, or facilitating wagers on sports, elections, politics, entertainment, culture, tech and science, or mentions in Washington. Kalshi must implement an IP address and residency based geofence by August 19 and a multi-source geofencing solution by September 2. This covers a substantial part of Kalshi’s business, which in recent years has been increasingly driven by sports wagers.

Attorney General Nick Brown said: “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. As this case moves forward, we will continue to enforce Washington law and hold Kalshi accountable for misleading consumers.”

Court Findings on Gambling Definitions and Deceptive Practices

The order is part of a preliminary injunction granted in July 2026 where the judge found that Kalshi was likely violating the law and that “substantial injury to Washington consumers” was likely to occur without an injunction. Kalshi asked the Washington Court of Appeals to stay this injunction, but the court denied the request.

Washington law defines gambling as “staking or risking something of value upon the outcome of a contest of chance or a future contingent event.” Each Kalshi bet risks money, relies in part on chance, and promises a payout to winners. Kalshi’s website and app show consumers events they can bet on and the odds, which dictate payouts if the event occurs. The court banned Kalshi from advertising these wagers to Washington consumers, ruling that its marketing and advertising of illegal gambling activities constitute unfair and/or deceptive acts or practices. This includes ads claiming consumers can “bet on anything” by calling it a “prediction market” rather than gambling. One advertisement referenced finding a way to bet on the NFL even though the users live in Washington.

The court also banned bets on “mentions,” where users bet on whether a public figure will say particular words. Such bets carry potential for cheating by people close to the source and are unfair to consumers.

Washington’s Constitutional and Statutory Ban on Gambling

Washington has prohibited gambling since it became a state in 1889, when its constitution barred the activity on state lands. The state continues to carefully regulate gambling activities to protect the public. In 2006, the Legislature amended the 1973 Gambling Act to make clear that internet gambling is prohibited under Washington law.

Reporting: Indian Gaming

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