Washington State in the US sues prediction market Kalshi… “No different from illegal gambling”

Prosecutors in Washington State in the United States have filed a lawsuit against prediction-market platform Kalshi, alleging illegal gambling operations and false advertising. The move reflects their view that the platform’s actual operating model is effectively the same as illegal gambling prohibited under state law.

On the 27th (local time), Washington State Attorney General Nick Brown said, “Kalshi has reduced every aspect of life—sports, elections, wars and more—into a vehicle for betting,” adding, “We have filed a suit seeking to halt Kalshi’s operations, impose civil penalties, and recover residents’ losses.”

According to the court filing, Kalshi used social tragedies and judicial proceedings as betting subjects, including this year’s measles case count, testimony in a child sex-trafficking trial, and the likelihood of a war with Iran. Brown stressed, “For Kalshi, every tragedy is merely a means to make money,” adding, “We will no longer tolerate attempts to cleverly evade Washington State’s gambling regulations.”

Under Washington State gambling law, gambling is defined as “staking something of value and risking it on the outcome of a contest or a future contingent event.” Prosecutors argued that Kalshi’s operations are no different from a typical sportsbook or casino that pays out based on odds. In particular, they cited as key evidence a Kalshi advertisement stating, “We found a way to bet on the NFL (National Football League) while living in Washington State,” as showing the company was aware it was violating state law.

Concerns were also raised about the platform’s marketing targets. Kalshi reportedly focused on young people ages 18–21 and college students, hiring college influencers to promote the app to their peers. Investigators also identified indications that the company attempted to recruit a 15-year-old minor influencer. This effectively confirms in a real-world case the addiction risks and youth-exposure dangers of online gambling that regulators, including Sen. Elizabeth Warren, have flagged.