A Bellevue, Washington resident is suing Kalshi to recover over $308,000 in sports betting losses, arguing the platform operated illegally under state law. Scott Bright transferred $315,353.94 to Kalshi between June and August 2026, alleging the platform cycled his deposits through $14.4 million in transactions. He claims Kalshi retained $84,062.71 in fees, equal to 26.7 percent of his deposits.
Bright’s lawsuit, filed September 24 in King County Superior Court, cites Washington’s long-standing ban on Internet gambling and a statutory cause of action allowing losers to recover money from operators. The complaint notes that the Washington Attorney General had previously sued Kalshi for the same violation. Kalshi disputes the claims, arguing event contracts are regulated under the Commodity Exchange Act and seeking dismissal to federal court.
The company maintains the contracts are not gambling but regulated financial products. If successful, Bright’s case could set a precedent for individual restitution, though Washington state litigation already seeks to recover all losses incurred by state residents through Kalshi’s operation.
Source: Ars Technica · Summarized by HeadlinesBriefing