Washington files lawsuit to shut down Kalshi betting platform

Washington State Attorney General Nick Brown has filed a lawsuit against online platform Kalshi, accusing the company of illegally operating and advertising a gambling service disguised as a “prediction market.”

The lawsuit, filed under Washington’s Gambling Act and Consumer Protection Act, seeks to block Kalshi’s operations in the state, recover money allegedly lost by residents, and impose civil penalties, Caliber.Az reports.

Washington is suing Kalshi for running an illegal betting operation. Kalshi tries to deceive governments and consumers by calling itself a ‘prediction market.’ If you spend a minute on their website, you’ll clock that this is a gambling site. They claim to offer a new financial… pic.twitter.com/EDgjmfnZFA

— Attorney General Nick Brown (@AGOWA) March 27, 2026

According to the complaint, Kalshi allows users to place money on the outcome of sports games, elections, court cases and other future events — including the total number of measles cases in a year or potential developments in international conflicts. While Kalshi brands itself as a “prediction market,” state officials argue its activities meet Washington’s legal definition of gambling: “staking or risking something of value upon the outcome of a contest of chance or a future contingent event.”

“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,” Brown said. “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 state argues that Kalshi’s platform functions similarly to a sportsbook, offering spread bets, over/under bets and proposition bets on professional and college sports — forms of wagering that are illegal online in Washington.

In one advertisement cited in the lawsuit, a person texts that they “found a way to bet on the NFL even though we live in Washington,” which the complaint says suggests the company was aware it was circumventing state restrictions.

Online gambling has been explicitly prohibited in Washington since lawmakers amended the state’s 1973 Gambling Act in 2006. The state constitution has restricted gambling since Washington achieved statehood in 1889, with limited, tightly regulated exceptions.

The lawsuit also accuses Kalshi of targeting young people, including college students aged 18 to 21, through campus-focused marketing campaigns and paid student influencers. According to the complaint, the company at one point briefly attempted to recruit a 15-year-old influencer to promote its platform.

Kalshi entered the Washington market in 2025. The company has not yet publicly responded to the lawsuit.

By Sabina Mammadli