Washington judge orders Kalshi to block sports and election markets

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A King County Superior Court judge set a Sept. 2 deadline and a $120,000-a-day penalty for non-compliance

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Kalshi must stop offering prediction markets on sports, elections, politics, entertainment, culture, and technology to Washington state residents after a King County Superior Court judge issued a final order finding the company violated the state's Gambling Act and Consumer Protection Act.

Judge John McHale's order, issued Wednesday, requires Kalshi to implement an IP address and residency-based geofence by Aug. 19 and a more comprehensive geofencing solution by Sept. 2, according to GeekWire. Missing the Sept. 2 deadline carries a $120,000-a-day penalty, though Kalshi can submit an affidavit explaining any delay for the court to assess the final amount. Kalshi is permitted to keep running markets on commodities, climate, economics, and finance for Washington residents, and existing positions in the prohibited categories may be wound down by users.