TechFlow News, March 29: According to Greekwire, Washington State Attorney General Nick Brown has filed a civil lawsuit against prediction market platform Kalshi, accusing it of violating state gambling and consumer protection laws by offering betting services on sports, elections, and wars. The lawsuit has been filed with the King County Superior Court and seeks to prohibit Kalshi from operating in the state, recover funds lost by residents, and impose civil penalties. Kalshi’s advertisements previously suggested users could circumvent local laws to place bets on the NFL—indicating its “willful violation” of regulations.
However, Kalshi responded that it is a federally regulated, compliant trading platform, denied offering war-related markets, and expressed confidence in prevailing in court. This marks another recent regulatory action against the company, which is currently involved in over 20 civil lawsuits. Earlier, Arizona’s attorney general filed criminal charges against Kalshi—the first criminal case ever brought against a prediction market.
