Washington Attorney General Nick Brown has sued Kalshi, accusing the company of running illegal online gambling in a state that bars internet gambling and only allows sports betting at tribal casinos under tightly limited rules. The case was filed in King County Superior Court on March 27.
The complaint says Kalshi is not just offering sports markets. It points to contracts tied to politics, entertainment, mention markets, and other future events, and argues that Washington law already covers that conduct.
State says Kalshi is offering gambling without a license
Washington’s legal footing is firm. The state Gambling Commission says online gambling is prohibited, and the transmission or receipt of gambling information over the internet is a class C felony unless the activity is specifically authorized.
Sports betting is one of the few exceptions, but even that carveout is narrow. Washington allows sports wagering only at tribal casinos with amended compacts, and mobile wagering must be geofenced so bets can only be placed while a customer is physically on tribal gaming premises.
The lawsuit asks for more than a shutdown
Brown’s office is asking the court for a permanent injunction, restitution for Washington consumers, disgorgement of Kalshi’s profits, civil penalties, and an accounting of every Washington customer who sent or received money through the platform. The complaint also invokes Washington’s Recovery of Money Lost at Gambling Act, which the state says allows it to recover losses for residents.
The state also says Kalshi is not licensed by the Washington State Gambling Commission and alleges the company has been collecting fees from bets made inside Washington while marketing products the complaint describes as bookmaking, online sports wagering, and illegal gambling devices.
Another state has joined the fight against Kalshi
This is not a warning shot. Washington’s own Gambling Commission said in December that prediction markets are not authorized in the state, and Brown’s lawsuit now turns that position into a live court fight.
The case also adds Washington to the list of states already pushing back against Kalshi. Arizona filed criminal charges this month, while Nevada and Massachusetts have already moved against the company in court.
