Washington judge labels Kalshi illegal, orders geofence and $120,000 fines
Kalshi, a platform where people bet on real-world events like sports and politics, has just been labeled an illegal gambling site in Washington state.
Judge John McHale gave Kalshi until September 2 to stop offering these bets to Washington users or face daily fines of $120,000.
The court also ordered the company to implement a geofence by Sept. 2, 2026, for the covered bets.
Kalshi says CFTC regulates prediction market
Kalshi says it's a prediction market regulated by the US Commodity Futures Trading Commission (CFTC), which has backed it up before.
But the judge found Kalshi was running online gambling without a state license and making money from transaction fees.
Bets on things like commodities or climate aren't affected, but reports raising red flags involving Kalshi and rival Polymarket have been flagged this year, highlighting ongoing legal headaches as states and federal regulators clash over who's really in charge.