Kalshi faces another lawsuit in Washington state, predicting an escalation of market regulatory storm.

PANews reported on March 29th that, according to CoinDesk, Washington State Attorney General Nick Brown has filed a civil lawsuit against prediction market platform Kalshi, accusing it of violating state gambling and consumer protection laws by offering betting services on events such as sports, elections, and war. The lawsuit, filed in King County Superior Court, seeks to prohibit Kalshi from operating in the area, recover lost funds from residents, and impose civil penalties. This is yet another regulatory action the company has faced recently, bringing it to the point of being involved in more than 20 civil lawsuits. Previously, Arizona prosecutors filed criminal charges against the company, considered the first criminal case against a prediction market.

The lawsuit alleges that Kalshi's advertisements suggested users could bypass local laws to participate in NFL betting, demonstrating its "knowing violation." However, Kalshi responded that it is a federally regulated and compliant trading platform, denies offering a war-related market, and expresses confidence in winning the legal battle.

It's worth noting that Kalshi entered the sports betting industry in 2025 and currently offers products such as handicap betting, over/under betting, and item betting, which has been criticized as being no different from traditional betting businesses. Furthermore, its platform also covers predictions of public events (such as disease case numbers and political figures' statements), further drawing regulatory attention.

At the industry level, prediction markets have also come under scrutiny due to high-stakes betting incidents involving platforms like Polymarket. Meanwhile, the U.S. Congress is pushing forward legislation to restrict prediction market platforms from engaging in sports betting.