Kalshi Starts Blocking Access to Sports Event Contracts in Washington
By Robert Linnehan in Industry
Published:
- Kalshi has started the process of prohibiting certain event contracts through geofencing in Washington
- A King County Superior Court judge ordered Kalshi to begin prohibiting certain event contracts beginning Aug. 19
- The company must put in a multi-source geofencing solution by Sept. 2
Kalshi has started the process of prohibiting certain event contracts in Washington following a King County Superior Court order.
The prediction market operator began notifying Washington users this week that certain markets were blocked in the state. Kalshi has started to prohibit sports, elections, politics, entertainment, culture, tech and science, and mentions event contracts in Washington.
The company must institute a multi-source geofencing solution by Sept. 2 or be subjected to $120,000 fines every day it fails to do so in the state.
Users Prohibited from Certain Contracts
Social media account “@PredictionNews_” on X published a notification Kalshi sent to its Washington users informing them of the new prohibition.
Kalshi is still be permitted to offer event contracts regarding commodities, climate, economics, and finance in the state.
The action came after King County Superior Court judge John F. McHale issued a final order last week that Kalshi must implement an IP address and residency based geofence in the state by Aug. 19
Judge McHale declared the state has shown a “likelihood of success on the merits” of its claims that portions of Kalshi’s event contract offerings, including sports event contracts, violates aspects of the Washington Gambling Act.
“Kalshi shall cease marketing, advertising, promoting, conducting, operating, facilitating, distributing, offering, or accepting event contracts, or other contracts, instruments, or products in Washington, related to sports, elections, politics, entertainment, culture, tech and science, or mentions, including but not limited to those listed in the ‘Sports,’ ‘Elections,’ ‘Politics,’ ‘Culture,’ ‘Tech and Science,’ and ‘Mentions’ tabs on Defendant’s platform,” McHale wrote in his order.
Lawsuit Alleges Kalshi Violates State Gambling Laws
Washington Attorney General Nick Brown filed a lawsuit against Kalshi this past March, alleging the company is in direct violation of the state’s prohibition of online gambling. While online sports betting is allowed in Washington, it is only allowed on tribal casino property and strictly prohibited off tribal land.
Brown notes in the lawsuit that Kalshi’s gambling operations “violate numerous provisions of Washington’s Gambling Act, as well as the Consumer Protection Act and the Recovery of Money Lost at Gambling Act.”
“In direct violation of this prohibition and public policy, Kalshi operates its online betting market nationwide, including in Washington and other states that prohibit online gambling. In its advertising and marketing, Kalshi specifically promotes illegal online sports gambling in Washington state,” Brown reported in the lawsuit.
Additionally, Brown said Kalshi has marketed itself to young people between the ages of 18 and 21, coaxing college students to their platform by routinely paying influencers to promote their gambling app to their peers.
The lawsuit seeks a permanent injunction from Kalshi’s alleged unlawful conduct in the state, restitution for consumers of money or property unlawfully acquired by Kalshi, and the court assess civil penalties for every violation of the Consumer Protection Act.
Regulatory Writer and Editor
Robert Linnehan covers all regulatory developments in online gambling and sports betting. He specializes in U.S. sports betting news along with casino regulation news as one of the most trusted sources in the country.
