Technology•Ars Technica
State judge orders Kalshi to stop offering sports bets and other wagers
•2 min read
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“A state court in Washington has ordered Kalshi to stop offering sports bets and other wagers, citing the company's lack of licensure and registration in the state. This move highlights the ongoing regulatory challenges faced by prediction markets and online betting platforms in the US. The implications for the US market and consumers are significant, as the industry continues to navigate complex laws and regulations.”
Core Impact Points
- Kalshi is not licensed by the state Gambling Commission and is not registered to conduct business in Washington.
- The court order requires Kalshi to implement an IP address and residency-based geofence by August 19 and a multi-source geofencing solution by September 2.
- Kalshi's ads claiming 'legal betting' in Washington state are likely to mislead a reasonable consumer, according to the court order.
- The lawsuit was filed by the state of Washington, with Attorney General Nick Brown issuing a press release announcing the court's decision.
- Kalshi's business has been increasingly driven by sports wagers in recent years, which are now prohibited in Washington state.
A state court in Washington this week ordered Kalshi to stop offering sports gambling and a variety of other wagers on its prediction market. King County Superior Court Judge John McHale issued a preliminary injunction in response to a lawsuit filed against Kalshi by the state of Washington.
“"The order requires Kalshi to stop offering, accepting, or facilitating wagers on sports, elections, politics, entertainment, culture, tech and science, or mentions in Washington," said a press release yesterday from Washington Attorney General Nick Brown.”
"Kalshi must implement an IP address and residency-based geofence by August 19 and a multi-source geofencing solution by September 2. This does not include all the wagers offered on Kalshi, but it includes a substantial part of their business, which in recent years has been increasingly driven by sports wagers.
" Kalshi is not licensed by the state Gambling Commission and is not registered to conduct business in Washington, the court order said. McHale found that Kalshi ads claiming "that it offers 'legal betting' in Washington state are likely to mislead a reasonable consumer that such gambling activities are legal under state law.
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Originally reported by Ars Technica
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