The Washington State Gambling Commission (WSGC) has formally announced that prediction markets offered by operators are illegal under the law, following Kalshi, Fanatics, and Polymarket launching their platforms across states. The commission has stressed that only tribal casinos can offer legal sports betting, and prediction market contracts cannot be offered to players. Washington hasn’t issued
The Washington State Gambling Commission (WSGC) has formally announced that prediction markets offered by operators are illegal under the law, following Kalshi, Fanatics, and Polymarket launching their platforms across states.
The commission has stressed that only tribal casinos can offer legal sports betting, and prediction market contracts cannot be offered to players.
Washington hasn’t issued any cease-and-desist orders yet; however, the state’s position can influence regulators in Arizona, Illinois, and Nevada, as they have also warned against illegal sports betting.
Most prediction-market platforms operate through CFTC-regulated “designated contract markets,” which, from a federal perspective, are financial products, not sportsbooks. But now, states are beginning to challenge the platforms that reference player statistics or sports scores.
While those who are on the side of prediction markets argue that they provide useful information about elections and economic indicators, critics say that allowing people to bet on events they don’t fully understand falls under the category of gambling.
It remains unclear whether operators like Kalshi and Fanatics will be able to expand their operations to more states. Washington, however, has shown a clear position on the issue, and until courts or Congress rule otherwise, prediction markets will be treated as illegal in the state.