A Bellevue, Washington, resident has filed a lawsuit against the prediction‑market platform Kalshi, claiming that the company violated state gambling laws and seeking more than $580,000 in damages.
Scott Bright, who lost over $308,000 on sports wagers placed through Kalshi, alleges that his betting activity took place at a time when online gambling was prohibited in Washington. He says the state’s Attorney General had already sued KalshiEX LLC in the same court for similar violations.
Bright’s complaint was filed on October 23 in King County Superior Court. The lawsuit argues that because his losses were incurred while the platform was operating illegally, he is entitled to restitution from Kalshi.
The case is part of a broader legal battle in which state attorneys general across the United States are attempting to shut down Kalshi for allegedly breaching state gambling regulations. Bright’s suit will test whether individual gamblers who lost money can recover funds through private litigation.
Kalshi is a prediction‑market exchange that allows users to trade contracts on the outcomes of events such as sports games. Washington has a long‑standing ban on online gambling, which the company’s operations appear to have contravened, according to Bright’s claims.
<small>Source: Ars Technica — read the original story there.</small>
