A state court in Washington has ordered Kalshi to stop offering sports and other wagers within the state. The injunction, issued by King County Superior Court Judge John McHale, comes after a lawsuit filed by the state of Washington against Kalshi.

“The order requires Kalshi to cease operations for a substantial part of its business, including all wagers on sports, elections, politics, entertainment, culture, tech and science,” stated Nick Brown, Washington’s Attorney General. “This does not include users exiting their current positions.”

Kalshi operates without a license from the state Gambling Commission and is not registered to do business in Washington. The court found that Kalshi's ads claiming 'legal betting' were misleading.

Non-compliance could result in daily penalties of up to $120,000 for Kalshi if it fails to implement the required geofencing measures by September 2. “Kalshi will not prohibit users from exiting positions they already hold,” the court order stated, reserving the state’s right to seek recovery for fees and losses incurred by Washington consumers.