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Judge John McHale Orders Kalshi to Limit Prediction Market Wagers in Washington State

King County Superior Court Judge John McHale ruled that the prediction market platform Kalshi is likely violating Washington state gambling laws. The court order requires Kalshi to implement geofencing technology by September 2, 2026, to restrict most types of betting—including sports, elections, and politics—while allowing wagers on commodities, climate, and finance. Judge John McHale noted that Kalshi has willfully ignored previous guidance from the state's Gambling Commission, which stated that events-based contracts are not authorized. The administration announced that the federal Commodity Futures Trading Commission (CFTC) has exclusive jurisdiction over these markets, and the administration has sued several states to prevent them from imposing a patchwork of state gaming laws. Kalshi argues that its platform functions as a financial exchange rather than a traditional gambling site. However, the state's attorney general, Nick Brown, argued that Kalshi has successfully profited from promoting wagers on various topics while misleading consumers about the legality of its operations in Washington.

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