Prediction market Kalshi sued in Washington State, USA, accused of illegal gambling

ZkProver · 2026-03-29T02:01:55+00:00

The Attorney General of Washington State has filed a civil lawsuit against prediction market platform Kalshi, accusing it of violating betting and consumer protection laws. The lawsuit seeks to ban its operations and recover damages. Kalshi denies any violations, claiming it is a compliant platform. It is currently involved in more than 20 lawsuits and faces significant regulatory challenges.

ZkProver

2026-03-29 02:01:55

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ChainCatcher news, according to Greekwire, Washington State Attorney General Nick Brown has filed a civil lawsuit against the prediction market platform Kalshi, accusing it of violating state betting and consumer protection laws by offering betting services on events such as sports, elections, and wars. The lawsuit has been submitted to the King County Superior Court, seeking to prohibit Kalshi from operating locally, recover lost funds for residents, and impose civil fines. Kalshi’s advertisements had suggested that users could bypass local laws to participate in NFL betting, indicating that it “knew it was violating the law.”

However, Kalshi responded by claiming it is a federally regulated compliant trading platform, denying that it offers war-related markets, and expressing confidence in winning the case legally. This is reported to be yet another regulatory action the company is facing recently, as it is already involved in over 20 civil lawsuits. Previously, the Arizona Attorney General had filed criminal charges against it, considered the first criminal case against a prediction market.

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