BlockBeats news, on March 29, according to Greekwire, Washington State Attorney General Nick Brown has filed a civil lawsuit against prediction market platform Kalshi, alleging that it violates state law by providing entertainment services for forecasting sports events, elections, and war-related events. The lawsuit has been filed at King County Superior Court, seeking to prohibit Kalshi from operating locally, recover residents’ losses, and impose civil penalties. Kalshi’s advertisements previously implied that users could circumvent local laws to participate in NFL event predictions, demonstrating its “knowledge of violations.”
Kalshi responded by stating that it is a federally regulated compliant trading platform, denying the provision of war-related event markets, and expressing confidence in winning the case at the legal level. This is another regulatory action Kalshi has faced recently. Currently, it is involved in over 20 civil lawsuits. Previously, the Arizona State Prosecutor’s Office filed criminal charges against it, which is considered the first criminal case against a prediction market.