Kalshi faces new state lawsuit as gambling claims grow
Kalshi is facing a new lawsuit in Washington state over its event-based contracts, which state regulators are classifying as illegal gambling.Summary
Kalshi, a prediction market operator, is embroiled in a growing legal battle with several U.S. states, including Washington, Nevada, and Arizona. Washington Attorney General Nick Brown filed a lawsuit alleging that Kalshi’s contracts violate state gambling and consumer protection laws, arguing the platform functions like a sportsbook allowing users to bet on future events. Kalshi has moved the case to federal court, citing similar legal challenges in other jurisdictions and claiming no prior warning from the state. This lawsuit follows previous setbacks for Kalshi, including a temporary ban in Nevada and charges in Arizona, as regulators increasingly scrutinize prediction markets and their potential as unlicensed gambling operations. The company maintains that the Commodity Futures Trading Commission has exclusive jurisdiction over its contracts.
(Source：Crypto News)