Kalshi Hit with Washington Ban and Baltimore Lawsuit Amid $40B Valuation Talks
A King County judge has ordered prediction market platform Kalshi to halt sports, election, and politics wagers in Washington state. According to a recent court order, the exchange must implement initial geofencing by August 19 and deploy a GeoComply multi-source system by September 2. This setback comes just days after the platform received backing from the CFTC.
The regulatory pressure extends beyond the Pacific Northwest. The City of Baltimore has launched a lawsuit targeting prediction markets over sports betting, alleging violations of gambling laws and deceptive trade practices. The complaint specifically names Kalshi alongside its partners Robinhood, Webull, and Coinbase.
Despite these mounting legal hurdles, Kalshi's financial trajectory remains explosive. The company is reportedly in talks with Sequoia and Wellington to raise $750 million at a staggering $40 billion valuation, nearly doubling the $22 billion valuation it achieved during its $1 billion raise in May. Investors tracking these massive capital flows can monitor platform developments on predictionmarketstools.com.
JPMorgan Severs Ties with Polymarket
In rival platform news, reports reveal that JPMorgan Chase shuttered its banking relationship with Polymarket in October 2025 due to regulatory concerns. However, the banking giant reportedly remains open to an underwriting role should the decentralized platform decide to go public.
Trump to Meet with Industry CEOs
Meanwhile, the broader industry may soon get a high-profile political audience. Sources indicate that President Donald Trump is expected to attend a White House meeting next week with CEOs from the prediction market, crypto, and AI sectors.