Kalshi sued by Washington state for illegal gambling, its third active legal battle with state regulators

Washington state Attorney General Nick Brown filed a lawsuit against prediction market platform Kalshi on Friday, alleging the company violates the state's Gambling Act and Consumer Protection Act by allowing residents to bet on elections, Supreme Court cases, wars, and other events, and seeking to halt the activity, recover money lost by residents, and assess civil penalties. The Washington lawsuit is the third active legal challenge Kalshi faces at the state level, following criminal charges filed by Arizona's attorney general on March 17 for allegedly operating an unlicensed wagering business, and a Nevada judge's temporary order barring Kalshi from offering event contracts for sports, elections, and entertainment in that state. The CFTC has meanwhile filed an amicus brief in federal court arguing that oversight of prediction markets falls under federal jurisdiction rather than individual states, a position Kalshi has leaned on in pushing back against the Arizona charges.