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Kalshi alleges selective enforcement in Washington prediction-market dispute

Regulation

Kalshi accused Washington State authorities of selectively enforcing gambling rules against its platform while leaving competitors, including Polymarket, unchallenged, according to a letter sent to the Washington State Gambling Commission. Washington’s attorney general’s office rejected the accusation and said its action was based partly on Kalshi’s size in the state. A King County judge had issued interim restrictions on Kalshi’s event contracts in August, while allowing contracts in several other categories to continue.

The dispute puts state enforcement of prediction-market contracts and the scope of Kalshi’s Washington operations at issue.

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US lawyers say CFTC may hold an edge in prediction-market dispute

US lawyers told a media report that the CFTC may have an advantage in disputes with states over prediction-market contracts, with the issue potentially reaching the Supreme Court. Courts remain divided, while states argue that sports-related contracts amount to unlicensed betting and the CFTC says federal law governs event contracts. A group of 17 senators has also sought to restrict CFTC funding for its lawsuits.

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