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The Kalshi platform, which trades contracts tied to real events, has informed users from Washington about new restrictions. This is due to a lawsuit filed by local regulators, who demanded that the company stop operating in the state. The company complied with the order, although it considers it legally questionable. Now, residents of the region have lost access to seven categories of tools: sports, politics, culture, technology, science, entertainment, and public life.

To comply with the requirement, Kalshi quickly implemented an IP address block, cutting off most customers from this state. But the authorities felt that wasn’t enough. They want a more precise geolocation system, which needs to be launched by September 1. If the deadline is missed, the company will have to pay a fine of $120,000 for each day of delay. This puts significant pressure on businesses, forcing them to accelerate even before the court has made a decision.

At the same time, Kalshi is trying to challenge the injunction. A motion to reconsider the measures has been filed in the King County court. The company argues that another platform — let’s call it OG — received much more lenient terms from the state. According to the plaintiff, this looks like unequal treatment. The hearing is scheduled for September 2, and its outcome may determine whether Kalshi will remain in the region.

Washington is not the only state with a ban. Michigan and Nevada did the same earlier, and in both cases the company appealed the decisions. The main argument is that Kalshi contracts have federal status and are considered derivatives. Therefore, according to the company, local gambling laws should not affect their circulation, as this is the federal government’s area of responsibility.

A review is also coming at the federal level. The CFTC has announced plans to update the rules for prediction markets. The priority is consumer protection, stricter product requirements, and unified listing standards. If this is adopted, the changes will affect not only Kalshi but the entire industry, changing the rules of the game in predictive trading.