The Washington State Attorney General filed a lawsuit against Kalshi, an online prediction market platform, alleging that the company is operating illegal internet gambling under state law. The lawsuit was announced on June 28, 2023, and contends that Kalshi’s offerings, which allow users to bet on the outcomes of political, weather, and other events, violate Washington’s strict ban on internet gambling. Kalshi positions itself as a federally regulated exchange rather than a traditional sportsbook, but Washington’s legal framework prohibits such betting platforms from operating online within the state. The Attorney General’s action underscores the ongoing regulatory tension and legal scrutiny facing prediction markets, which blur the lines between gambling and financial trading. The case is closely watched for its potential implications on the legality and regulation of online event-based betting platforms in the United States.