A Washington judge has ruled that Kalshi is likely violating state gambling laws, ordering the prediction market to block most of its event contracts.
US.- King County Superior Court Judge John McHale has ordered Kalshi to stop accepting contracts in Washington on sports, elections and politics, entertainment, culture, technology and science. He found that the platform was likely operating in violation of state gambling laws.
Under the preliminary injunction, Kalshi must introduce an initial geofencing system by August 19 and a more advanced system by September 2 to prevent Washington residents from accessing the restricted contracts. Failure to comply could result in fines of $120,000 per day.
McHale also prohibited Kalshi from advertising or marketing the restricted products to Washington consumers. The platform must continue allowing users to their accounts and withdraw their funds.
McHale described Kalshi as an “online betting platform” and cited concerns over gambling addiction. He also found that the company had “wilfully ignored” guidance from the Washington State Gambling Commission stating that event-based contracts were not authorised in the state.
Kalshi has appealed the injunction and said it is considering legal action. “The CFTC has exclusive jurisdiction over our exchange,” Kalshi spokesperson Jacki McGavick said.
Washington Attorney General Nick Brown sued Kalshi in March, arguing that its event contracts constitute gambling despite being structured as financial products. “Kalshi has got rich promoting wagers on sports, elections, natural disasters, events related to the Iran War, and more,” Brown said. He is also seeking to recover money lost by Washington bettors and to impose civil penalties.
Este conteúdo foi curado e adaptado a partir da publicação original de Focus Gaming News.