According to Greekwire, Washington State Attorney General Nick Brown has filed a civil lawsuit against the prediction market platform Kalshi, alleging that it violated state gambling and consumer protection laws by offering betting on sports events, elections, and wars. The lawsuit has been filed with the King County Superior Court, seeking to prohibit Kalshi from operating locally, recover losses incurred by residents, and impose civil penalties. Kalshi’s advertisements previously suggested users could bypass local laws to bet on NFL games, indicating “knowing violation.” In response, Kalshi stated that it is a federally regulated and compliant trading platform, denied offering markets related to wars, and expressed confidence in its legal defense. This is the latest regulatory action against the company, which is currently facing over 20 civil lawsuits. Previously, Arizona prosecutors brought criminal charges against Kalshi, marking the first criminal case targeting a prediction market.
Washington State Sues Prediction Market Kalshi for Alleged Illegal Gambling
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Summary
Washington State has sued the prediction market Kalshi, alleging it violates gambling and consumer protection laws by offering bets on sports, elections, and wars. The case filed in King County Superior Court seeks to halt Kalshi’s operations, recover losses incurred by residents, and impose penalties. Kalshi contends it is a federally compliant platform and denies offering markets related to war. The company now faces more than 20 lawsuits, including criminal charges in Arizona. As liquidity and crypto markets evolve, regulatory scrutiny is intensifying, with MiCA establishing new EU standards for cryptocurrency oversight.
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