The post Kalshi Faces Multi-State Lawsuits as Prediction Markets Labeled ‘Disguised Gambling’ appeared on BitcoinEthereumNews.com.

TLDR: Washington state sued Kalshi on Friday, alleging its prediction market products violate state online gambling laws. Nevada secured a temporary restraining order forcing Kalshi to halt sports, election, and entertainment contracts statewide. Coinbase, a Kalshi partner, received a preliminary injunction and 60 days to comply with Nevada’s court order. Legal experts say the federal versus state jurisdiction clash over prediction markets may reach the U.S. Supreme Court. Prediction markets platform Kalshi is facing growing legal pressure from multiple U.S. states. Washington state filed a lawsuit against the company on Friday, alleging violations of state gambling laws. The filing came just one week after Nevada secured a temporary restraining order against Kalshi. Nevada also won a preliminary injunction against Coinbase’s prediction market offerings. Legal experts now say this dispute could eventually reach the U.S. Supreme Court. Washington State Targets Kalshi Over Gambling Law Violations Washington state’s attorney general filed the complaint, arguing that Kalshi operates gambling products in disguise. Kalshi Faces Multi-State Lawsuits as Prediction Markets Labeled ‘Disguised Gambling’ Washington state has sued prediction market platform Kalshi, alleging it offers gambling products under the guise of “prediction markets” in violation of state law. Earlier, Nevada secured a… pic.twitter.com/Ni9RAhrkz7 — Wu Blockchain (@WuBlockchain) March 28, 2026 According to the state, Washington maintains a tightly regulated gambling market, including a ban on online gambling. The lawsuit alleges that Kalshi bypasses these regulations through its platform. The attorney general’s office stated that Kalshi’s app displays events and corresponding odds for consumer payouts. Officials argued this model mirrors how traditional gambling operations function. The state press release noted that Kalshi “advertises that they allow consumers to ‘bet on anything’ by simply calling their service a ‘prediction market‘ rather than ‘gambling.’” The lawsuit further claimed that Kalshi’s products promoted gambling addiction and specifically targeted college…

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Filed under: News - @ March 28, 2026 11:18 pm