Washington State Court Orders Kalshi to Halt Some Prediction Market Services
Summary
- The King County Superior Court in Washington state issued a preliminary injunction barring prediction market platform Kalshi from offering event contracts tied to sports, elections, politics and other categories in the state.
- The court found that Washington had substantiated its claim that Kalshi's services violate state gambling laws, and Attorney General Nick Brown welcomed the ruling as a step to hold the company accountable for operating illegal gambling.
- Under the ruling, Kalshi must roll out a geoblocking system for users in Washington in phases, and the state's appellate court denied its request to pause the order.
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A Washington state court has moved to curb prediction market platform Kalshi's operations.
Cointelegraph reported Aug. 15 that Judge John McHale of King County Superior Court issued a preliminary injunction barring Kalshi from offering event contracts in Washington tied to sports, elections, politics, entertainment, culture, and technology and science. Prediction market services related to commodities, climate, the economy, and finance were excluded from the order.
The court found that Washington had substantiated its claim that Kalshi's services violate state gambling laws. Washington Attorney General Nick Brown welcomed the decision, saying the state is holding the company accountable for operating illegal gambling.
Under the ruling, Kalshi must implement a geoblocking system based on IP addresses and residency information by Aug. 19. By Sept. 2, it must adopt GeoComply's multi-data geoblocking system.
Kalshi has maintained that the Commodity Futures Trading Commission has exclusive authority over its exchange and that its services are not subject to state gambling laws. Washington's appellate court, however, denied Kalshi's request to pause the order.
Uk Jin
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