Washington sues Kalshi over alleged illegal gambling
Washington Attorney General Nick Brown sued KalshiEX LLC on 27 March, alleging that its event contracts constitute illegal gambling under state law. The state seeks to recover residents’ alleged losses; Kalshi moved the case to federal court the same day, arguing that federal law and the CFTC’s jurisdiction apply.
The lawsuit could determine whether Washington gambling law applies to Kalshi’s event contracts and whether residents’ alleged losses can be recovered.