Kalshi is being sued by the Washington State Attorney General for allegedly violating state gambling laws. This lawsuit adds to the company's growing legal challenges in the U.S.
The Washington State Attorney General filed a lawsuit against Kalshi on Friday, claiming the prediction market operator violated the state's strict gambling regulations. The complaint cites violations of the Washington Consumer Protection Act, Gambling Act, and Recovery of Money Lost at Gambling Act. Attorney General Nick Brown stated that Kalshi's operations resemble those of traditional sportsbooks, despite being labeled as a 'prediction market.'