The prediction market Kalshi has been sued in Washington State, USA, accused of illegal gambling

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 have suggested that users could bypass local laws to participate in NFL betting, indicating that they "knowingly violated the law."

However, Kalshi responded by stating that it is a compliant trading platform regulated by federal authorities, denying the provision of war-related markets, and expressing confidence in winning the case legally. This is reportedly another regulatory action the company is facing recently, as it is currently involved in over 20 civil lawsuits. Previously, prosecutors in Arizona had filed criminal charges against it, which is considered the first criminal case against a prediction market.