- Washington AG Nick Brown sued KalshiEx LLC (Kalshi), alleging its online “prediction market” platform operates as an illegal gambling business under Washington law.
- According to the complaint, Kalshi allegedly markets prohibited online sports wagers and other “event contracts” to Washingtonians on topics ranging from NFL games to measles case counts, while rebranding gambling as a lawful “predictive market.” The complaint also alleges Kalshi uses affiliated market makers to play a role similar to the house in traditional gambling models, even though Washington broadly bans internet gambling outside narrow exceptions.
- The lawsuit seeks a permanent injunction to halt the platform’s operations in the state, along with restitution, disgorgement, civil penalties, an accounting, and recovery of money allegedly lost by Washington residents.
- We previously reported on similar lawsuits, including, among others, those filed by Massachusetts AG Andrea Joy Campbell and Michigan AG Dana Nessel, alleging Kalshi violated state gambling laws.