Kalshi has been sued in Washington State, currently facing over 20 lawsuits.

Odaily Planet Daily News: Washington State Attorney General Nick Brown has filed a civil lawsuit against prediction market platform Kalshi, alleging that by providing betting services for events such as sports betting, elections, and wars, it violates the state’s gambling and consumer protection laws. The lawsuit has been submitted to the King County Superior Court, seeking an injunction to prevent Kalshi from operating locally, to recover residents’ lost funds, and to impose civil penalties. Kalshi’s advertisements have previously implied that users could bypass local laws to place NFL bets, demonstrating that it was “aware of the violations.”

However, Kalshi’s side responded that it is a compliant trading platform regulated by the federal government, denied offering war-type markets, and said it is confident it will prevail on the legal front. It is reported that this is another regulatory action the company has faced recently; it is currently involved in more than 20 civil lawsuits. Previously, prosecutors in Arizona had brought criminal charges against it, which is believed to be the first criminal case targeting a prediction market. (Geekwire)