Washington Man Sues Kalshi Over $308,000 in Sports Betting Losses
Scott Bright, a Bellevue, Washington resident, filed a complaint in King County Superior Court on September 24, 2026, alleging Kalshi violated the state's online gambling ban.
1 source 2h ago
Reporting from 1 source: GIGAZINE.
Why it matters
The case tests whether a state's gambling loss recovery statute can reach prediction market contracts that Kalshi says are federally regulated event contracts, and Washington's attorney general has already argued the state can recover residents' losses.
Key Facts
- Scott Bright, a Bellevue, Washington resident, filed his complaint against Kalshi in King County Superior Court on September 24, 2026.
- Bright lost more than $308,000 betting on sports including professional baseball and tennis, and seeks more than $580,000.
- Bright sent Kalshi $315,353.94 in 253 transfers between June 17 and August 14, 2026.
- Kalshi filed a motion to dismiss on October 30, 2026, arguing its event contracts are governed by the Commodity Exchange Act and CFTC rules.
- Washington obtained a court order restricting the types of bets Kalshi can offer in the state, but it took effect after Bright incurred his losses.
Bright lost more than $308,000 betting on sports including professional baseball and tennis, and seeks more than $580,000. Kalshi moved to dismiss on October 30, arguing its event contracts fall under federal Commodity Exchange Act and CFTC authority, not state gambling law.
Bright sent Kalshi $315,353.94 across 253 transfers between June 17 and August 14, 2026, and the platform collected $5,589.05 in deposit fees on those transfers. Because he repeatedly reused winnings, his total trading volume reached $14,396,457.30, with Kalshi collecting $84,062.71 in fees, according to the complaint.
Washington has already obtained a court order restricting the types of bets Kalshi can offer in the state, but that order took effect after Bright incurred his losses. Kalshi is seeking removal to the U.S. District Court for the Western District of Washington and argues only the federal government can regulate event contracts.
Written with AI by Yomimono from the 1 cited source below, including Japanese-language reporting where cited. See our editorial policy.
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