Kalshi Sued by Washington Attorney General

(AsiaGameHub) –   According to the legal filing, Kalshi is accused of breaching both the Washington state Gambling Act and the Consumer Protection Act.

In the U.S., Washington Attorney General Nick Brown has initiated legal action against Kalshi. The complaint contends that the prediction market operator is breaking state regulations by permitting users to place wagers on sports, political elections, and various other occurrences.

The legal action asserts that Kalshi is infringing upon the Washington state Gambling Act and Consumer Protection Act by trying to bypass these statutes through labeling its wagering interface as a prediction market. “Under Washington law, gambling is defined as staking or risking something of value on the result of a contest of chance or a future contingent event, and Kalshi’s operations fit squarely within this definition,” the filing declares.

Brown remarked: “Kalshi encourages wagering on nearly every conceivable aspect of life—including election results, Supreme Court rulings, and even conflicts. To Kalshi, every incident and tragedy serves merely as an opportunity for Americans to gamble their wealth and for Kalshi to profit. While promoting this grim outlook on the future, they fill their coffers and congratulate themselves for evading Washington’s gambling statutes. This stops now.”

Additionally, Arizona Attorney General Kris Mayes has brought criminal charges against KalshiEx and Kalshi Trading, whereas Michigan Attorney General Dana Nessel has lodged a suit claiming the prediction market firm breached the state’s Lawful Sports Betting Act (LSBA). The legal filing requests an abatement order and injunctive relief.