The state of Washington has officially sued Kalshi, as the state government believes that Kalshi has packaged online betting, which should be subject to state gambling laws, as event predictions, essentially still "gambling cloaked in financial attire." Citing Washington State's Gambling Act and Consumer Protection Act, they are asking the court to stop the related business and hold accountable for the damages caused to consumers in the state.

Nevada is even more aggressive, with the court granting a temporary restraining order to temporarily prohibit Kalshi from continuing to provide predictions related to sports, elections, and entertainment outcomes to Nevada residents.

Kalshi is facing not just public opinion controversy, but real regulatory scrutiny. Washington State's formal lawsuit directly defines it as a variant of illegal gambling, while the Nevada court has already issued a temporary restraining order, indicating that prediction markets are rapidly moving from a gray area into the realms of state law and federal regulatory authority.

The next thing to watch is whether the U.S. considers event forecasting to belong to financial markets or to gambling.

Currently, Singapore can no longer directly link to Kalshi; it was previously fine, but now it is inaccessible, similar to polymarket.

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