Prediction Market Kalshi Faces Washington State Lawsuit Alleging Illegal Gambling
Washington state is suing Kalshi, alleging its prediction market constitutes illegal gambling under state law.Summary
Washington state filed a lawsuit against Kalshi on March 27, 2026, claiming the company’s prediction market violates the state’s Gambling Act and Consumer Protection Act. Attorney General Nick Brown stated Kalshi allows betting on various events, including elections and tragedies, for profit. The lawsuit seeks to halt these activities, recover losses for residents, and impose penalties. This legal challenge is one of several facing Kalshi; the company is also facing criminal charges in Arizona for operating an unlicensed wagering business and banning betting on elections, and a temporary bar in Nevada regarding event contracts. The U.S. Commodity Futures Trading Commission (CFTC) is also asserting its authority to oversee prediction markets, arguing it lies with the federal government, not individual states.
(Source：Pymnts)