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Kalshi ordered to halt broad prediction markets in Washington state
The court requires Kalshi to add IP-address and residency geofencing by Aug. 19 and a GeoComply multi-source geofencing system by Sept. 2.
A Washington state judge has ordered prediction market platform Kalshi to stop offering a broad range of event contracts in Washington after rejecting Kalshi’s argument that federal commodities law preempts state gambling rules, according to Cointelegraph.
King County Superior Court Judge John McHale barred Kalshi from selling contracts tied to categories including sports, elections, politics, entertainment, culture, tech and science, and “mentions,” while carving out exemptions for contracts involving commodities, climate, economics and finance.
The amended order, signed Wednesday, keeps in place a preliminary injunction previously granted in July and sets compliance deadlines for the platform. Kalshi must implement IP-address and residency-based geofencing by Aug. 19, and deploy a GeoComply multi-source geofencing system by Sept. 2 to block Washington users from buying the contract types covered by the injunction.
Cointelegraph reports that the judge concluded the Commodity Exchange Act does not preempt Washington’s gambling law and that the state demonstrated a likelihood of success on claims under three state laws. Kalshi argued that the U.S. Commodity Futures Trading Commission has exclusive jurisdiction, and Washington’s Court of Appeals declined to stay the injunction.