The Washington state attorney general has filed a lawsuit against Kalshi, claiming the company offers gambling products disguised as prediction markets. The lawsuit alleges violations of state gambling laws and highlights concerns about promoting gambling addiction.
The lawsuit, filed on Friday, accuses Kalshi of violating Washington's tightly-regulated gambling laws, which include a ban on online gambling. The complaint states that Kalshi's platform allows users to bet on various events, similar to traditional sportsbooks. Additionally, the lawsuit claims that Kalshi's advertisements misrepresent their services as 'legal betting' and specifically target college students, raising concerns about gambling addiction.