(WA Attorney General) The state of Washington is suing the online betting platform Kalshi for running an illegal betting platform, calling itself a “prediction market”.
Kalshi attempts to skirt state law by branding its betting platform as a “prediction market,” but whatever Kalshi chooses to call it, Kalshi’s operations clearly fall under the definition of illegal gambling in Washington. The lawsuit argues Kalshi violates the Washington state Gambling Act and Consumer Protection Act, and seeks to halt these unlawful activities, recover money lost by Washingtonians, and assess civil penalties.
Kalshi, created by Tarek Mansour and Luana Lopes Lara in 2018, launched in 2021 after obtaining a license from the Commodity Futures Trading Commission in 2020.
Kalshi entered the betting market in 2025, first allowing Washington consumers to bet on both college and pro sports. Kalshi offers spread bets (a bet on the difference in score between two competing sports teams), over/under bets (a bet on how many total points will be scored in a sports game), and proposition bets (bets on specific events that may occur within a sports game, such as the number of touchdowns a football player might score during the game). All of these types of bets are commonly offered by sportsbooks and casinos, and unlawful in Washington state. Its activities spread quickly, encompassing all ranges of betting. – Attorney General’s Office Press Statement
