Regulations
By Evie Vavasseur
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Geofencing Deadlines and What Kalshi Must Do. To comply, Kalshi has two hard deadlines. First, IP-address and residency-based geofencing has to…
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State vs. Federal: The Bigger Fight Behind the Ruling. The tension here isn't just about Kalshi. Prediction markets have been operating in a genuinely…
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A Washington state judge just ordered Kalshi to stop offering a wide range of event contracts to residents of the state.
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King County Superior Court Judge John McHale issued the injunction. It bars Kalshi from providing contracts tied to sports, elections, politics, entertainment, culture,…
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Washington Attorney General Nick Brown said the action came because the state sees Kalshi's operation as illegal gambling, plain and simple.
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The preliminary injunction rests on Judge McHale's finding that the Commodity Exchange Act doesn't override Washington's gambling statutes.
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No further comment from Kalshi on how it plans to handle enforcement. Unclear whether the company intends to appeal further or just comply and fight later.
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The court's position is that states retain the right to regulate what they consider gambling within their own borders, even when a platform runs under a federal commodities…
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See also: Baltimore Sues Kalshi and Polymarket Over Illegal Sports Betting, Dragging Robinhood and Coinbase Into the
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The amended order — signed just days ago — builds on the preliminary injunction McHale first granted in July. So this isn't a brand new fight.
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Kalshi's legal argument has basically been: the CFTC governs us, so Washington can't touch us. The court's answer, so far, has been: no.
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What happens if Kalshi misses the geofencing deadlines is probably the next question worth watching.
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The GeoComply requirement is worth noting specifically. GeoComply is a well-known geolocation compliance vendor used across regulated gambling and gaming markets.
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For Kalshi users in Washington, the practical effect is a hard block on a big chunk of what the platform offers.
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See also: Gemini Bleeds $107.7 Million in Q2 as Prediction Markets Bring In Just $500K
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