Kalshi has been sued in Washington state, USA, and is currently involved in more than 20 lawsuits.

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 state, recover lost funds from residents, and impose civil penalties. Kalshi's advertisements implied that users could circumvent local laws to participate in NFL betting, indicating that it "knowingly violated the law." However, Kalshi responded that it is a federally regulated and compliant trading platform, denies offering war-related betting markets, and expressed confidence in winning the legal battle. This is reportedly another regulatory action the company has faced recently, now involving more than 20 civil lawsuits. Previously, Arizona prosecutors filed criminal charges against it, considered the first criminal case against a prediction market. (Geekwire)