Key Highlights
Washington sued Kalshi in King County Superior Court, alleging the platform violates the state Gambling Act and Consumer Protection Act.
The complaint seeks to stop Kalshi’s operations in Washington, recover money lost by residents, and impose civil penalties.
The lawsuit follows Arizona’s criminal case against Kalshi earlier in March.
Washington Attorney General Nick Brown filed a civil lawsuit against Kalshi on Friday, accusing the prediction-market platform of illegally offering event contracts in the state, including on sports and elections, without complying with Washington gambling law. The case was filed in King County Superior Court and also alleges violations of the state Consumer Protection Act.
The state is seeking an order to halt Kalshi’s operations in Washington, recover losses from state residents, and secure civil penalties. The complaint also points to a Kalshi ad referencing a way to bet on the NFL from Washington, where sports betting is otherwise tightly restricted outside tribal lands.
Kalshi disputes that it is operating illegally. The company says it is a federally regulated exchange overseen by the Commodity Futures Trading Commission and argues that state gambling laws should not override that framework.
Earlier this month, Arizona filed criminal charges against Kalshi, the first such case against the company, while Senators Adam Schiff and John Curtis introduced legislation to bar CFTC-regulated entities from listing contracts that closely resemble sports bets or casino-style games.
