Category: Regulation & Litigation
Summary:
Washington State Attorney General Nick Brown has filed a civil lawsuit against prediction market platform Kalshi, escalating the legal battle over whether such platforms constitute illegal gambling. The suit, filed in King County Superior Court, alleges that Kalshi violated state gambling and consumer protection laws by offering wagering on sports, elections, and other events under the guise of “prediction markets.” The AG’s office is seeking an injunction to stop Kalshi from operating in the state, restitution for player losses, and civil penalties. This action mirrors a growing trend of state-level crackdowns on platforms that attempt to bypass traditional sports betting regulations through financial market structures. Kalshi maintains it is a federally regulated exchange and not a sportsbook .
