Washington Judge Orders Kalshi to Halt Sports and Election Betting Statewide

A King County Superior Court judge issued a final order requiring Kalshi to cease numerous Washington state operations, finding the prediction-market platform likely violated the Washington Gambling Act and Consumer Protection Act by running what amounts to an illegal gambling operation in the state.

The order is narrowly scoped by subject rather than banning Kalshi outright: it requires the company to stop offering or facilitating wagers tied to sports, elections, politics, entertainment, culture, and tech and science outcomes in Washington. Prediction markets tied to commodities, climate, economics, or finance are explicitly excluded and remain legal.

Kalshi must implement an IP-address and residency-based geofence by August 19, 2026, and a more robust multi-source geofencing system by September 2. Missing the September 2 deadline carries a $120,000-per-day penalty, though Kalshi can submit an affidavit for the court to consider before that amount is finalized.

This final order follows a preliminary injunction the court granted in July 2026, in which the judge had already found Kalshi's Washington activity likely illegal and that Washington consumers faced substantial injury absent an injunction — August's order converts that preliminary finding into an enforceable, deadline-driven remedy.

The finance/commodities carve-out is the detail worth tracking: it signals the court sees a real legal distinction between betting on sports or elections and trading on economic or climate outcomes, which is likely to become the template other states reach for as similar Kalshi disputes play out elsewhere.