Attorney General Nicholas Brown accuses prediction market platform of 'sneaking around Washington's gambling laws.'
Attorney General Nicholas Brown accuses prediction market platform of "sneaking around Washington's gambling laws." Photo By - Reuters Connect. Nicholas W. Brown, Attorney General of Washington, speaks to the media, outside the U.
S. Supreme Court in Washington, D.C., U.S., May 15, 2025. REUTERS/Leah Millis Washington State Attorney General Nicholas Brown filed a lawsuit on Friday, suing prediction market operator Kalshi for illegal gambling. The state is targeting the legality of all Kalshi’s contracts, not just those involving sporting events. is rife with court proceedings as more states challenge the legality of their products. For instance, prediction markets offer trading on contracts that in many ways mimic sports betting, Meanwhile, the operators are unlicensed and unregulated as sports betting providers at the state level. Washington State is one of the latest states to join the legal fray. NEW: Washington Attorney General sues online betting platform Kalshi in WA state court for illegal gambling, seeks injunction to halt unlawful activities, restitution to recover monies lost by WA residents, and civil penalties. Uses state court enforcement, not C&D., filed in Washington State King County Superior Court, is seeking a permanent injunction against the prediction market operator Kalshi, halting its operation in the state. It is also seeking any financial gains Kalshi received from its Washington operations. The state is also asking the Court to impose civil penalties for each violation of Washington’s State Consumer Protection Act and Gambling Act. , note that Washington State boasts some of the strictest gambling laws in the country. While some gambling is allowed on tribal lands, that is not true anywhere else in the state. When Washington became a state in 1889, its constitution prohibited gambling on state lands. And to further strengthen its legal defenses against gambling, it passed legislation to clearly ban internet gambling in 2006. And it is obvious from the AG’s press release that he finds Kalshi’s operations particularly egregious. “Kalshi wants people betting on almost everything possible in life – the outcome of elections, Supreme Court cases, even wars. For Kalshi, every event, every tragedy is nothing more than a potential way for Americans to risk their fortunes and for Kalshi to get rich,” said Brown. “As they advance this bleak vision of the future, they line their pockets and pat themselves on the back for sneaking around Washington’s gambling laws. No more.” contend that their contracts are trades, rather than bets, that hair splitting might not help them in the Evergreen State. Washington state’s law defines gambling as “staking or risking something of value upon the outcome of a contest of chance or a future contingent event,” which, at face value, seems to encompass prediction market contracts. Amy Calistri got her high school letter in golf and hasn't golfed since. She has a collegiate letter in wrestling, but never wrestled. She was arguably the worst catcher in IBM's coed softball league. But she is a hardcore sports fan, having spent her formative years yelling from Boston Garden's second balcony and Fenway's cheap seats. Amy loves when she can combine her love of sports with her business acumen. She has covered the sports and gambling industries for more than 20 years, writing for outlets including Bluff Magazine, PokerNews, and OnlineGambling.com. Amy co-hosted the popular radio show Keep Flopping Aces and co-wrote Mike “The Mouth” Matusow’s memoir, Check-Raising the Devil. Amy is also published in the areas of economics, investing, and statistics.Copyright © 1995 - 2026 CS Media Limited All Rights Reserved. If you choose to make use of any information on this website including online sports betting services from any websites that may be featured on this website, we strongly recommend that you carefully check your local laws before doing so.It is your sole responsibility to understand your local laws and observe them strictly.Covers does not provide any advice or guidance as to the legality of online sports betting or other online gambling activities within your jurisdiction and you are responsible for complying with laws that are applicable to you in your relevant locality.Covers disclaims all liability associated with your use of this website and use of any information contained on it.As a condition of using this website, you agree to hold the owner of this website harmless from any claims arising from your use of any services on any third party website that may be featured by Covers.
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