Kalshi must restrict Washington's access to markets covering sports, elections, politics, and several other categories. JPMorgan reportedly ended a core banking relationship with Polymarket in 2025. Coffeezilla accused prediction platforms and their promoters of disguising gambling as investing.
Prediction markets are facing pressure on several fronts as state officials, financial institutions, and prominent online critics challenge the industry's attempts to distinguish event contracts from gambling. A Washington judge has ordered Kalshi to withdraw many of its most popular markets from the state. Meanwhile, JPMorgan reportedly cut a key banking relationship with rival Polymarket over regulatory concerns.
The developments coincided with a new video from YouTube investigator Coffeezilla, who has spoken out against the accelerating "gamblification" of financial platforms. King County Superior Court Judge John McHale has ordered Kalshi to stop offering or facilitating a broad range of event contracts to Washington residents. The restrictions cover sports, elections, politics, entertainment, culture, technology, science,e and "mentions" — markets that let customers speculate on whether a public figure will use a particular word or phrase.
Kalshi can continue offering contracts connected to commodities, climate, economics, cs, and finance. Washington customers may also close positions they already hold in the prohibited categories. The company must introduce an IP address and residency-based block by Aug. 19, followed by a multi-source geofencing system by Sept. 2.
Kalshi could face penalties of $120,000 per day if it fails to complete the second stage on time, KOMO News reported. Polymarket has encountered a different form of regulatory pressure. JPMorgan terminated a banking relationship with the prediction platform in 2025 because of compliance concerns, the Financial Times reported, citing people familiar with the matter.
The bank reportedly told Polymarket in October 2025 that it would need to move the account to another financial institution. The platform has since secured a replacement banking provider whose identity has not been disclosed. Polymarket disputed the suggestion that it had been completely cut off from the bank.
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