Washington sues online betting platform Kalshi for illegal gambling

# Washington Sues Kalshi Over Illegal Online Betting Operations

Washington Attorney General Nick Brown filed suit against Kalshi on March 27, 2026, alleging the online platform violates state gambling laws by operating an illegal betting service disguised as a "prediction market." The company allows users to wager money on sports outcomes, elections, court cases, and other events, including bets on measles cases and potential war scenarios.

Kalshi, which launched in 2025, offers traditional sportsbook betting products including spread bets, over-under bets, and proposition bets. Brown contends the company deliberately circumvents Washington's Gambling Act by rebranding its operations as prediction markets rather than acknowledging them as gambling. The lawsuit cites evidence suggesting Kalshi knowingly evades state law, including advertisements claiming customers can "bet on the NFL even though we live in Washington."

The state seeks to shut down Kalshi's unlawful activities, recover losses incurred by Washington residents, and impose civil penalties. Under Washington law, gambling is defined as "staking or risking something of value upon the outcome of a contest of chance or a future contingent event"—a definition the attorney general argues clearly encompasses Kalshi's operations.