Washington Attorney General (AG) Nick Brown filed a lawsuit on Friday, 27 March, against Kalshi for violating the state’s Gambling Act and Consumer Protection Act.
The suit seeks to stop Kalshi from offering its services in Washington and recover money lost by its residents to the prediction markets platform.
Brown argued Kalshi’s operations fall under the definition of gambling in Washington law.
Gambling is defined as “staking or risking something of value upon the outcome of a contest of chance or a future contingent event” in the state.
Online gambling remains illegal in the Evergreen State.
In a press release issued by Brown’s office, the AG accused Kalshi of offering “spread bets, over/under bets and proposition bets”.
The only form of sports wagering currently permitted in Washington is in-person at designated tribal casinos.
Brown said: “Kalshi wants people betting on almost everything possible in life – the outcome of elections, Supreme Court cases, even wars.
“For Kalshi, every event, every tragedy is nothing more than a potential way for Americans to risk their fortunes and for Kalshi to get rich.
“As they advance this bleak vision of the future, they line their pockets and pat themselves on the back for sneaking around Washington’s gambling laws. No more.”
The press release noted Kalshi allows its users to bet on outcomes in the Iran war and on the number of measles cases in a year.
The AG expressed particular concern with Kalshi’s marketing, which is claimed is directed at people between the ages of 18 and 21.
The prediction markets platform has paid college student influencers to promote the app to their peers and once attempted to recruit a 15-year-old influencer, according to the AG.
Last week, a bill which would ban prediction market platforms from offering bets on elections, sports and military and government actions was introduced to both the Senate and the House of Representatives by Democrat politicians from Maryland and Oregon.
Earlier this month, Arizona’s AG Kris Mayes filed criminal charges against Kalshi, accusing the firm of operating illegally without a licence in the state.
The post Washington becomes latest US state to sue Kalshi over illegal gambling allegations first appeared on EGR Intel.
Attorney General Nick Brown claims the prediction market platform’s actions “clearly fall under the definition of illegal gambling in Washington”
The post Washington becomes latest US state to sue Kalshi over illegal gambling allegations first appeared on EGR Intel.