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Washington Judge Orders Kalshi to Halt Sports Bets by Sept. 2

Quick Glance at the Facts

• A King County Superior Court judge ordered Kalshi to stop offering wagers on sports, elections, politics, entertainment, culture, tech and science, and “mentions” in Washington, per the Washington Attorney General’s Office (Aug. 13, 2026).
• Kalshi must add IP and residency-based geofencing by Aug. 19 and a multi-source geofencing system by Sept. 2, or face a $120,000-a-day penalty, GeekWire reported.
• Markets on commodities, climate, economics, and finance can still run in the state.

A Seattle judge has ordered prediction market operator Kalshi to block Washington users from most of its event-contract markets, including sports and elections, by Sept. 2, 2026. It removes a big part of what Washington bettors used Kalshi for, backed by steep daily fines.

What the Washington Order Requires

King County Superior Court Judge John McHale signed the final order, which the office of Attorney General Nick Brown announced on Aug. 13, 2026. It requires Kalshi to stop offering or facilitating wagers on sports, elections, politics, entertainment, culture, tech and science, or “mentions” in Washington, and bars advertising those wagers to state residents.

Kalshi must install an IP and residency-based geofence by Aug. 19 and a multi-source geofencing system by Sept. 2, with a $120,000-a-day penalty for missing that deadline. Washington users can still close positions they already hold in the blocked categories.

AG Brown sued Kalshi in March 2026 and the court granted a preliminary injunction on July 20, 2026. The judge found the company likely violated the Washington Gambling Act and the Consumer Protection Act, the Attorney General’s office said. McHale wrote that Kalshi “willfully ignored” a Washington State Gambling Commission notice from December 2025 that said event-based contracts are not authorized in the state.

Where the Case Goes From Here

Kalshi maintains the U.S. Commodity Futures Trading Commission “has exclusive jurisdiction” over its exchange, and spokesperson Jacki McGavick said the company disagrees with the ruling and is considering all legal options. GeekWire reported that Kalshi already lost stay requests at the trial court and a state appeals commissioner, and that it brought in former U.S. Acting Solicitor General Neal Katyal.

Its remaining options include a full Court of Appeals panel review or emergency review at the Washington Supreme Court, GeekWire reported. Covers reported the Aug. 13 order makes Washington the third state to restrict Kalshi, after Michigan and Nevada.

What Washington Bettors Can Do Now

Washington players who used Kalshi for sports or election contracts will be geofenced out by Sept. 2, though they can still close open positions and trade the commodities, climate, economics, and finance markets that remain.

Online gambling is mostly banned in Washington, with sports betting allowed only in person on tribal lands, so state residents looking for other real-money options often turn to offshore casino sites, which our Washington online casinos guide covers in detail.

GamblingNerd Take

Kalshi’s “it’s a federal exchange, not gambling” argument keeps losing in state courts, and Washington’s daily fine gives it a real reason to comply fast rather than wait on appeal. For Washington bettors, the smart move is to close out any open sports or election positions before the Sept. 2 cutoff instead of counting on a last-minute reversal.