Washington Sues Kalshi Over Alleged Illegal Online Gambling Under State Law
Attorney General Nick Brown has filed a civil complaint against Kalshi, accusing the company of running an online platform that lets people bet on sports, elections, and a wide range of other events in violation of Washington state law. The state contends that Kalshi’s practices amount to illegal gambling, even though the company markets its product as a “prediction market.”
Kalshi’s marketing and operations, according to the lawsuit, fall squarely under Washington’s Gambling Act and Consumer Protection Act. The AG seeks to halt the unlawful activities, recover money allegedly lost by Washington residents, and impose civil penalties.
“Kalshi wants people betting on almost everything possible in life—the outcome of elections, Supreme Court cases, even wars,” Brown said. “They’re pursuing a future where every event is a chance to gamble and for Kalshi to profit, while flouting Washington’s gambling laws.”
Under Washington law, gambling is defined as risking something of value on the outcome of a contest of chance or a future contingent event. The complaint argues that Kalshi’s bets involve real money, depend partly on chance, and promise a payout to winners, which fits the statute’s definition of gambling.
Kalshi’s user interface displays events and odds that determine payouts, mirroring the structure of sportsbooks and other gambling operators. The company has promoted itself as permitting users to “bet on anything” by calling the service a “prediction market” rather than a form of gambling. A Kalshi advertisement reportedly shows someone texting about finding a way to bet on the NFL “even though we live in Washington,” a message the state says highlights Kalshi’s awareness of Washington’s restrictions.
Kalshi began offering betting in 2025, initially targeting Washington residents for college and professional sports bets. The platform includes spread bets, over/under bets, and proposition bets—types commonly found in sportsbooks but deemed unlawful in Washington. Kalshi’s reach expanded quickly to cover a broad spectrum of wagering activity.
Washington’s gambling history stretches back to statehood in 1889, with a constitutional prohibition on gambling on state lands and ongoing regulation to protect the public. In 2006, lawmakers clarified that internet gambling falls under the state’s ban. The complaint argues that online platforms like Kalshi heighten the risk of problem gambling.
The state also cites Kalshi’s marketing toward younger audiences, including college students, and notes efforts to recruit influencers, including a short-lived attempt to enlist a 15-year-old promoter.
Read the complaint here.
If you or someone you know is dealing with gambling addiction, you can contact the Washington State Problem Gambling Helpline at 1-800-547-6133. Other resources are available here.
Consumers who wish to file a complaint with the Consumer Protection Division can call 1-800-551-4636 or 1-800-833-6384 for the hearing impaired, or visit the AG’s website at https://www.atg.wa.gov/file-complaint.
Washington’s Attorney General represents residents and the state in legal matters. As the state’s largest law firm, the Office of the Attorney General provides legal services to state agencies, boards, and commissions, while also enforcing consumer protection, civil rights, and environmental laws, prosecuting elder abuse, Medicaid fraud, and handling sexually violent predator cases in 38 of Washington’s 39 counties. Learn more at www.atg.wa.gov.
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