Kalshi has shut off access for users in Washington state as it seeks to overturn or narrow a court order that forces the company to add location and residency controls to parts of its prediction market platform.
The dispute is unfolding in King County, where an amended preliminary injunction requires Kalshi to implement checks on Washington users in stages and threatens daily penalties if deadlines are missed. The company has also asked the court to reconsider the order, arguing that the state is treating a rival exchange differently.
Court order sets staggered compliance deadlines
Under the amended injunction, Kalshi must have IP address and residency-based controls in place by Aug. 19. A broader GeoComply system that draws on multiple sources of location data must be operational by Sept. 2.
If the company falls behind, it could face penalties of up to $120,000 per day unless it submits a sworn explanation to the court. The order also requires preservation of records tied to the covered activity.
Wide range of contracts covered
The restrictions apply to contracts tied to sports, elections and politics, as well as entertainment, culture, technology and science. The order also reaches certain "mentions" markets, extending the scope beyond a narrow set of event contracts.
Washington’s position is that these offerings amount to unlicensed gambling under state law. Kalshi, by contrast, is fighting the state’s authority to impose those limits while broader legal questions continue to be tested in court.
Kalshi seeks reconsideration over rival treatment
Kalshi has asked the King County judge to reconsider the injunction. In that filing, the company argues that Washington entered into an agreement with competing exchange OG and that the arrangement results in unequal treatment.
That claim has become a central part of Kalshi’s push to revisit the restrictions after already blocking Washington customers. The request does not by itself change the deadlines in the existing order.
Broader state challenge remains unresolved
The Washington case sits alongside disputes in other states, including Michigan and Nevada, where access to Kalshi is also restricted while litigation continues. Those conflicts raise broader questions about whether federal rules preempt state efforts to limit the company’s markets.
For now, the next confirmed step in Washington is a Sept. 2 hearing on Kalshi’s reconsideration request. The court has said there will be no oral argument unless a party asks for it.
Source: crypto.news