Kalshi has been ordered to keep operating under federal rules even as a Washington state judge imposed limits on what the prediction market can offer to users in the state. The rulings leave the platform open, but carve out several categories that must be blocked for Washington residents on a tight compliance schedule.
Under the Washington injunction, Kalshi must stop offering contracts tied to sports, elections, politics, entertainment, culture, technology, and science in the state. At the same time, a separate order from the U.S. Commodity Futures Trading Commission requires the company to continue operating under federal standards while New York seeks to halt its contracts.
Washington order narrows what users can access
The Washington injunction does not shut Kalshi down outright. Instead, it bars the company from offering, accepting, or facilitating contracts in seven named categories for Washington residents, and also prohibits advertising those contracts to people in the state.
The restricted categories are sports, elections, politics, entertainment, culture, technology, and science. Contracts tied to commodities, climate, economics, and finance may remain available to Washington users under the terms described in the order.
Two geofencing deadlines set
The court set two near-term deadlines for Kalshi to enforce the Washington restrictions. By Aug. 19, the company must have an initial geofencing system in place based on users’ IP addresses.
By Sept. 2, Kalshi must replace or supplement that first layer with a multi-source geofencing system. The order states that missing the deadline could expose the company to penalties of $120,000 per day.
Federal regulator separately says platform must remain open
The Washington restrictions arrived alongside a separate directive from the CFTC. On Aug. 11, the federal regulator ordered Kalshi to continue operating under federal rules while New York attempts to stop its contracts.
That creates a split picture for the platform: Kalshi is required to remain in operation under federal oversight, but must also comply with a state-level injunction that limits access to certain types of contracts in Washington.
What happens next
The immediate next step is technical compliance with the Washington order. Kalshi must first deploy IP-based geofencing by Aug. 19 and then move to a multi-source system by Sept. 2 to keep restricted contracts away from Washington users.
For now, Washington residents can still access the categories not covered by the injunction, including commodities, climate, economic, and financial event contracts. The broader dispute remains active, with New York separately seeking to halt Kalshi’s contracts while the company continues operating under the CFTC’s federal framework.
Source: crypto.news