Washington Man Sues Kalshi Over $308,000 in Sports Betting Losses

Scott Bright lost $308,000 on sports wagers placed on the prediction market Kalshi. He is now suing the company in King County Superior Court to recover the money, along with additional damages that bring his total claim to over $580,000. The lawsuit was filed on September 24.

Bright, a resident of Bellevue, Washington, argues that his bets were placed while online gambling was prohibited in the state. His legal filing notes that the Washington Attorney General had already sued KalshiEX LLC in the same court to enforce this ban. Bright contends that his wagering occurred during a period when the state law clearly forbade the activity.

The case tests whether individual gamblers can win restitution through private lawsuits while state attorneys general pursue their own regulatory actions. Bright’s filing states that Washington has banned internet gambling since 2006. It adds that state law has long allowed any person who loses money at illegal gambling to recover those funds from the proprietor who benefited from the game.

Kalshi has filed a motion to dismiss Bright’s lawsuit. On October 30, the company argued that the case belongs in the US District Court for the Western District of Washington rather than state court. Kalshi claims the dispute involves event contracts, which it says are regulated only by the federal government, not state gambling laws.

The company’s legal position distinguishes between traditional gambling and its specific product. According to Kalshi, Bright did not lose money on gambling but rather on event contracts. This distinction is central to the company’s effort to remove the case from state jurisdiction.

Washington’s own lawsuit against Kalshi seeks to recover all money lost by Washingtonians under the state’s Recovery of Money Lost at Gambling Act. The state attorney general has already won a court order restricting the types of wagers Kalshi can offer. However, that order took effect after Bright incurred his losses, leaving his personal claim distinct from the state’s regulatory action.

State attorneys general across the United States are currently working to shut down Kalshi for alleged violations of state gambling laws. Bright’s individual suit runs parallel to these government efforts, offering a separate path for players to seek financial redress for their losses.