Prediction market platform Kalshi faces civil lawsuit in Washington State

According to Mars Finance, on March 29, Greekwire reported that Washington State Attorney General Nick Brown has filed a civil lawsuit against the prediction market platform Kalshi, accusing it of violating state laws by providing entertainment services for predicting sports events, elections, and wars. The lawsuit has been submitted to the King County Superior Court, seeking to prohibit Kalshi from operating locally, recover lost funds for residents, and impose civil fines. Kalshi’s advertisements had suggested that users could bypass local laws to participate in NFL event predictions, indicating that they were “knowingly in violation.” Kalshi responded by stating that it is a compliant trading platform regulated by federal authorities, denying the provision of war-related event markets, and expressing confidence in winning the case legally. This is another regulatory action faced by Kalshi recently, as it is currently involved in over 20 civil lawsuits. Previously, the Arizona prosecutor had filed criminal charges against it, marking what is considered the first criminal case against a prediction market.