Washington state has filed a lawsuit against prediction market provider Kalshi, alleging the company violated state regulations. The action makes Washington the latest state to take legal steps against the platform. The filing adds to a growing pattern of regulatory scrutiny facing Kalshi across the United States.
The lawsuit comes approximately one week after Nevada successfully obtained a temporary restraining order requiring Kalshi to halt the offering of sports, election, and entertainment products within that state. Nevada’s legal action preceded Washington’s and set a notable precedent for state-level challenges to prediction market operators. The restraining order represented a significant early legal setback for Kalshi in its efforts to operate across multiple states.
Nevada also moved against Coinbase‘s prediction markets operation, securing a preliminary injunction targeting that platform as well. Coinbase’s prediction markets had similarly offered bets on sports, elections, and entertainment events. The injunction signals that Nevada regulators are taking a broad approach to reining in prediction market activity within the state.
The legal challenges reflect increasing tension between prediction market companies and state regulators over whether such platforms fall under existing gambling or financial regulations. Both Kalshi and Coinbase have faced questions about the legal classification of their products. The outcomes of these cases could have significant implications for how prediction markets are regulated nationwide.
Originally reported by CoinDesk.
