Washington gambler sues Kalshi over alleged $308,781.62 losses
Regulation1 min read
Scott Bright filed a lawsuit against Kalshi in King County Superior Court, alleging the platform violated Washington's online gambling ban. His complaint says he lost $308,781.62 between 17 June and 14 August 2026; Kalshi has sought dismissal and argues its event contracts are regulated under federal law and that counterparties, not the company, received his losses.
Scott Bright has sued Kalshi in Washington, alleging that its prediction market violated the state's online gambling ban. Kalshi has sought to dismiss the case.
Bright's case argues that Kalshi's product is online gambling, which Washington has expressly banned since 2006. He argues that state law allows people to recover money lost through illegal gambling from the operators responsible. Kalshi said Bright sought nearly twice his alleged net realised losses from it and parent company Kalshi Inc. under the state's gambling loss-recovery statute and an unjust enrichment claim.
The company argued that Bright's disputed wagers involved event contracts on its platform, regulated under the Commodity Exchange Act and Commodity Futures Trading Commission rules. He did not claim the company had misrepresented the platform's operation, its fees or the risks of losing a position.
Washington state sued Kalshi earlier in the summer. In that lawsuit, the state claims it can recover residents' losses from Kalshi's allegedly illegal gambling operations under Washington's Recovery of Money Lost at Gambling Act.