WA judge issues injunction against Kalshi for ‘likely violating’ state gambling laws

OLYMPIA, Wash. - A King County judge issued a preliminary injunction against online betting platform Kalshi, finding they likely violated the state's laws against illegal gambling.

Washington State Attorney General Nick Brown won the preliminary injunction on Monday, roughly three months after first suing Kalshi for illegal online gambling, and also for its social media ads which boast about sports betting even in states where it is illegal.

"This victory is the first step toward holding Kalshi accountable for their brazen violations of Washington law," said Brown after Monday's injunction. "Kalshi padded their pockets as they promoted illegal betting on sports, elections, the total number of measles cases this year, what will witnesses say during a child trafficking hearing, and even natural disasters."

WA lawsuit against Kalshi

The AGO sued Kalshi back in March, claiming the platform violates Washington's Gambling Act by offering unlicensed wagering on sports, elections, entertainment, and thousands of different topics.

Kalshi allows sports bets such as spreads, under/overs, player props and parlays, along with bets on potential outcomes, like who will win a local election, specific words said during a TV show premiere, or even the total number of measles cases this year.

Despite Kalshi's branding as a "prediction market," the state maintains the service meets the legal definition of gambling.

According to the AGO, Washington State's definition of gambling is "staking or risking something of value upon the outcome of a contest of chance or a future contingent event," and they contend that Kalshi's operations fit entirely within that definition.

Kalshi is not licensed by the Washington State Gambling Commission to conduct online gambling.

The response from WA tribal gambling association

The Washington Indian Gaming Association (WIGA), a nonprofit group of state tribal leaders, applauded the preliminary injunction.

WIGA Executive Director Rebecca George issued the following:

"It has long been obvious that Kalshi has been offering unregulated, online sports betting, targeted largely at college age young men, in direct violation of Washington State’s sports betting law. Our law, adopted on a bipartisan basis, is crystal clear: sports betting in Washington State must be limited to the brick and mortar premises of tribal casinos. Now by issuing this preliminary injunction, a judge has agreed.

"Slapping a 'prediction market’ label on sports betting doesn’t change what it is – it’s gambling, just without the rules and protections Washington requires. We urge the court to move quickly to shut down Kalshi’s illegal operations here in Washington, and restore the integrity of our carefully regulated system of gaming that protects consumers and respects tribal sovereignty."

Gambling is only legal on tribal lands in Washington, and WIGA distributes proceeds to tribes across the state for infrastructure, education, social services and charity.

What's next:

King County Superior Court will issue a final order on August 5, and in that time, Kalshi and the Attorney General's Office (AGO) will work to determine the appropriate recompense.

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