Washington state's attorney general has filed a lawsuit against prediction market operator Kalshi, Cointelegraph reported on March 28 (local time).
Kalshi is accused of violating state gambling-related laws.
The attorney general's office said Kalshi violated the Washington Consumer Protection Act, gambling laws and a law on recovering gambling losses. Washington state bans online gambling and applies strict regulation across the gambling market.
Attorney General Nick Brown (닉 브라운) said Kalshi's website and app show users a list of events they can bet on and the odds. "This is the same as how gambling operations such as sportsbooks work," he said. He said Kalshi merely calls its service a "prediction market" rather than "gambling."
Under Washington state law, gambling is defined as "staking something of value on the outcome of a contest or future uncertain event." The attorney general's office said betting on Kalshi exposes money to risk, relies in part on chance and promises payouts to winners, and therefore fits that definition.
Chi-gyu Hwang
delight@d-today.co.kr