OLYMPIA, WA — Washington Attorney General Nick Brown has filed a lawsuit against an online betting platform, alleging it is operating illegally and targeting residents with unlicensed gambling activities.
According to the complaint filed in King County Superior Court, KalshiEx, LLC operates an online platform that allows users to place wagers on a wide range of topics, including sports, elections, and other real-world events. The state argues those activities violate Washington law, which broadly prohibits internet gambling unless specifically authorized.
In a news release issued Friday, the Attorney General’s Office said the lawsuit seeks to halt the company’s operations in Washington, recover money lost by consumers, and impose civil penalties.
State officials allege Kalshi markets itself as a “prediction market” rather than a gambling platform, but the complaint argues its services meet the legal definition of gambling because users risk money on uncertain outcomes in exchange for potential payouts.
The platform offers bets on topics ranging from sports outcomes and political races to public events and global issues, including wagers on the number of measles cases in a given year, what witnesses might say during a child trafficking hearing, and other real-world events.
Washington law has long restricted gambling activity, with a 2006 statute reaffirming a ban on internet gambling. The state allows limited sports betting only at licensed tribal facilities, where wagers must be placed in person.
The complaint also alleges Kalshi promotes its platform in Washington despite those restrictions and collects fees from wagers placed by users in the state.
Brown criticized the company’s business model in a statement, saying it encourages people to bet on nearly every aspect of life while attempting to avoid state regulations.
The lawsuit also raises concerns about the accessibility of online gambling and its potential risks, particularly among younger users, as platforms like Kalshi allow betting at any time through mobile devices and online accounts.
The case is ongoing.
