Washington Attorney General Nick Brown is the latest leading state official to go on the offensive against Kalshi in court.
Brown sued the prediction market platform in state court on Friday, alleging illegal gambling. The complaint filed in King County Superior Court alleges that Kalshi is in violation of Washington’s Gambling Act and Consumer Protection Act and asks the court to stop Kalshi from operating in the state and to impose civil penalties.
It also claims that under the Recovery of Money Lost at Gambling Act, the Attorney General is entitled to recover all money that Washingtonians have lost through Kalshi’s “illegal gambling operation”.
Kalshi completely flouting state gaming laws, says AG Brown
In a press release, Brown stated that while Kalshi attempts to skirt state law by branding itself a ‘prediction market’, Kalshi’s operations “clearly” fall under the definition of illegal gambling in Washington.
“Kalshi wants people betting on almost everything possible in life — the outcome of elections, Supreme Court cases, even wars,” added Brown in a statement. “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.”
In Washington, online sports betting is only legal if it is offered through partnerships with tribal casinos and if the mobile wagering is done while the user is physically present on tribal land. Statewide, off-premise mobile betting is not legally permitted.
However, Brown wrote that Kalshi offers trading on sports statewide in Washington, as well as on elections and other events. In terms of sports in particular, the AG added that Kalshi allows users to trade on both college and pro sports, including spread bets, over/unders and props, all of which are unlawful in Washington state.
“Kalshi advertises that they allow consumers to ‘bet on anything’ by simply calling their service a ‘prediction market’ rather than ‘gambling’,” added the AG’s statement. Brown also asserted that Kalshi markets itself to people between the ages of 18 and 21, entices college students to their platform, and “routinely” pays college student influencers to promote its app.
Washington Indian Gaming Association hails court move
In a statement, Washington Indian Gaming Association (WIGA) Executive Director Rebecca George praised AG Brown for taking the fight to Kalshi in court.
“Slapping ‘prediction market’ on sports betting doesn’t change what it is – it’s gambling, just without the rules and protections Washington requires,” wrote George in a statement provided to SBC Americas. “Our state has spent decades building a carefully regulated system that protects consumers and respects tribal sovereignty, and efforts to bypass it are dangerous. We appreciate the Attorney General’s actions to address these risks.
“Issues of this magnitude require meaningful government-to-government consultation with tribes. Without clear federal guardrails, these markets risk undermining consumer protections, tribal sovereignty, and the integrity of our regulatory system. We look forward to addressing these concerns in coordination with the Attorney General’s Office.”
States take up arms against Kalshi
While several battles involving Kalshi rage on in federal courts around the country, Washington is the latest state to sue the company in state court, after Massachusetts, Nevada and Michigan all previously did so. On March 16, Arizona AG Kris Mayes filed a criminal complaint in state court after Kalshi had pre-emptively sued her office in federal court. That was the first criminal charges against Kalshi; all other court filings have been civil complaints.
On March 20, the Nevada Gaming Control Board (NGCB) won a temporary restraining order against Kalshi that blocked the firm from offering sports, election and entertainment-related event contracts for a period of 14 days, pending a hearing on the board’s request for a preliminary injunction.
“The balance of hardships and public interest in maintaining meaningful control over Nevada’s gaming industry for the purpose of ensuring its integrity strongly supports issuance of the temporary restraining order,” wrote the judge in that ruling.
Washington AG not afraid of court gaming battles
Meanwhile, Kalshi isn’t the only company deemed to be offering illegal gaming that AG Brown has taken to court.
In early February, he filed a lawsuit in King County Superior Court against Aristocrat and Playtika, alleging that the two companies and their subsidiaries, including Product Madness, Big Fish Games, Plarium and Pixel United, were operating unlicensed social casino apps that equate to gambling.
Brown alleged that at least some of the sites operated by those brands do not implement age verification or limitations on who can access the games, and that some of Playtika’s sites are designed specifically to appeal to children as a target audience.
