Washington Sues Online Betting Platform Kalshi Over Alleged Illegal Gambling

State alleges Kalshi is operating unlicensed gambling activities that violate state law.

Mar. 28, 2026 at 2:24am

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The Washington Attorney General's Office has filed a lawsuit against the online betting platform Kalshi, alleging the company is operating illegal gambling activities that target state residents. The state argues Kalshi's 'prediction market' platform allows users to place wagers on a wide range of real-world events, which violates Washington's ban on internet gambling.

Why it matters

Washington has long restricted gambling activity, only allowing limited sports betting at licensed tribal facilities. The state alleges Kalshi is attempting to circumvent these regulations by marketing itself as a 'prediction market' rather than a gambling platform, despite its services meeting the legal definition of illegal gambling.

The details

The lawsuit, filed in King County Superior Court, seeks to halt Kalshi's operations in Washington, recover money lost by consumers, and impose civil penalties. The state argues Kalshi's platform offers bets on topics ranging from sports outcomes and political races to public events and global issues, which it says constitutes illegal gambling under state law.

  • The lawsuit was filed on March 27, 2026.

The players

Nick Brown

The Washington Attorney General who filed the lawsuit against Kalshi.

KalshiEx, LLC

The online betting platform that is being sued by the Washington Attorney General for allegedly operating illegal gambling activities.

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What they’re saying

“We must not let companies like Kalshi continue to skirt state regulations and encourage people to bet on nearly every aspect of life.”

— Nick Brown, Washington Attorney General

What’s next

The case is ongoing, and the court will determine whether Kalshi's operations violate Washington's gambling laws.

The takeaway

This lawsuit highlights the ongoing tension between emerging online betting platforms and state regulations on gambling, as well as concerns about the accessibility and potential risks of these activities, particularly for younger users.