Kalshi blocks Washington customers as it seeks review of prediction-market injunction

Kalshi has blocked Washington customers from seven categories of event contracts while asking Judge John McHale to reconsider an amended preliminary injunction restricting its prediction markets. The company argues Washington is applying a double standard by allowing federally regulated competitor North American Derivatives Exchange, operating as OG, to continue offering similar contracts under an Aug. 18 agreement. The court is scheduled to decide Kalshi's request on Sept. 2 without oral argument, while broader geofencing requirements and a potential $120,000 daily penalty remain in effect. Kalshi also faces restrictions in Michigan and Nevada as courts weigh whether the federal Commodity Exchange Act preempts state gambling laws. CFTC Chairman Michael Selig said the agency plans amendments addressing consumer protection, product governance, market design, listing standards and incentive programs, though the proposals will not automatically resolve the state disputes.

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