WA sues betting company Kalshi for allowing illegal online gambling

SEATTLE - Washington state is suing the online betting platform Kalshi, alleging it allows illegal gambling prohibited by state law.

What they're saying:

Attorney General Nick Brown filed a lawsuit against Kalshi on Friday, claiming the platform violates Washington's Gambling Act by offering unlicensed wagering on sports, elections, entertainment, and thousands of different topics.

SPAIN - 2026/03/18: In this photo illustration, the Kalshi online betting app logo is seen displayed on a smartphone screen. (Photo Illustration by Davide Bonaldo/SOPA Images/LightRocket via Getty Images)

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.

The lawsuit highlights Kalshi advertisements that specifically target Washington residents, including one that promotes gambling on the NFL, despite state prohibitions. Washington outlawed online gambling in 2006, with the sole exception of sports wagers placed and accepted on tribal lands.

A Kalshi advertisement promoting the platform's use in Washington, included in the complaint.

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

According to the filing, Kalshi’s mobile-accessible platform exploits psychological triggers and is designed to drive addictive behavior, encouraging impulsive, high-risk engagement. The complaint alleges Kalshi recruits college students and influencers to market its gambling app to young adults.

What's next:

The lawsuit requests a list of all Washington residents that have used the platform and lost money, so the state can recover all the money Washingtonians have lost from Kalshi.

Kalshi has 60 days to respond to the lawsuit. You can read the full complaint below:

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