Washington Attorney General Nick Brown argued that Kalshi’s prediction-market products amount to gambling and are not regulated in the state. His office has sued Kalshi, seeking to stop its operations; Brown said enforcing Washington law was his priority.
The lawsuit tests whether Washington can treat Kalshi’s prediction-market products as gambling and stop its operations.
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Washington Attorney General Nick Brown has sued companies operating 16 casino-style apps, seeking to stop them from operating in the state and recover more than $225m spent by residents since 2020. The complaint alleges purchases exceeded $151m in Playtika titles and $74m in Aristocrat apps; Playtika disputes the state’s legal interpretation and has moved to dismiss the case.
Texas Attorney General Ken Paxton has not joined the expanding campaign by states against Kalshi and other prediction markets. The outlet contrasted his absence with his previous positions opposing gambling.
Minnesota Attorney General Keith Ellison filed a memorandum opposing the CFTC’s motion for a preliminary injunction against the state’s prediction market statute, according to the report.
Kalshi co-founder and chief executive Tarek Mansour argued at a Washington event that prediction markets depend on skill rather than traditional betting. He said 25% to 33% of users finish a year in profit, while US public-health experts and gambling businesses dispute the model’s character and regulatory treatment.
Arkansas Attorney General Tim Griffin filed separate lawsuits against Kalshi and VGW on Wednesday, alleging that both offered illegal gambling in the state. He seeks financial penalties, customer-loss restitution and unpaid taxes; Kalshi did not respond to a request for comment before publication.
Arkansas Attorney General Tim Griffin filed separate suits on Wednesday against Kalshi, a prediction markets operator, and VGW, a sweepstakes operator. The complaints say both firms run unlawful gambling in the state. Griffin also wants large monetary penalties, with money returned to customers and tax payments returned to the state.