Kalshi legal woes grow with Washington state gambling suit
Washington state is suing Kalshi, alleging its prediction markets violate state gambling laws and consumer protection regulations.Summary
Kalshi, a prediction markets operator, is facing a lawsuit from the Washington state attorney general, alleging violations of state gambling laws, the Washington Consumer Protection Act, and the Recovery of Money Lost at Gambling Act. The suit argues that Kalshi functions as a sportsbook despite labeling itself a “prediction market,” allowing users to “bet on anything.” Washington state law defines gambling as risking something of value on an uncertain event, which the attorney general claims accurately describes Kalshi’s activities. This lawsuit follows a recent temporary block on Kalshi’s operations in Nevada, where a judge found state authorities likely to prevail in a similar legal challenge. Kalshi maintains that its contracts fall under the jurisdiction of the US Commodity Futures Trading Commission and that the issues are already being litigated in other courts, criticizing the lack of prior communication from Washington state before the lawsuit was filed. Arizona has also filed criminal charges against Kalshi for operating an illegal gambling business.
(Source：Headtopics)