Kalshi appeals Washington prediction markets gambling dispute

"Kalshi warned that moving forward in state court during the appeal could produce conflicting rulings and weaken the company's ability to challenge the remand decision. Kalshi asks Washington federal court to stay order remanding case to state court pending resolution of its appeal to the Ninth Circuit, says being forced to engage in state-court litigation while the appeal is pending "would render Kalshi's appellate rights meaningless.""

"Kalshi told the court that "[b]eing forced to engage in state-court litigation while the appeal is pending would render Kalshi's appellate rights meaningless and unnecessarily burden the courts and the parties.""

"Washington sued Kalshi in March, accusing the federally regulated exchange of offering contracts that violate state gambling laws. The lawsuit focuses on sports event contracts and other prediction market products traded through Kalshi's platform. According to the filing, Kalshi argued the state's complaint "is not limited to sports event contracts but arguably targets every contract Kalshi offers on its exchange.""

"Kalshi operates as a designated contract market overseen by the U.S. Commodity Futures Trading Commission. The company has repeatedly argued that federal law preempts state attempts to regulate trading activity conducted on federally approved exchanges. In its latest filing, Kalshi said "Federal law therefore preempts state regul"

Kalshi asked a federal judge in Seattle to temporarily halt Washington’s gambling lawsuit while it pursues an appeal to the Ninth Circuit. Kalshi filed a motion on May 8 requesting a freeze of the remand order after the dispute was sent back to state court earlier that month. Kalshi argued that continuing in state court during the appeal could create conflicting rulings and weaken its ability to challenge the remand decision. Kalshi also said being forced to litigate in state court while the appeal is pending would make its appellate rights meaningless and add unnecessary burdens. Washington sued in March, alleging Kalshi’s prediction market contracts violate state gambling laws, including sports event contracts and other products on its platform.

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