Prediction market platform Kalshi faces mounting legal challenges across multiple states. Washington state sued the company Friday, alleging its prediction market violates state gambling and consumer protection laws. The complaint seeks to halt operations, recover losses for residents, and impose civil penalties. Washington's Attorney General argues Kalshi allows betting on elections, court cases, wars, and virtually any event, enabling illegal gambling. This follows criminal charges filed by Arizona in March for operating an unlicensed wagering business and allowing election betting. Kalshi disputes these claims, arguing federal regulators hold jurisdiction over prediction markets. The CFTC has backed this position, filing court briefs asserting its authority over the sector rather than individual states.
