Trader Loses $308,000 on Kalshi, Sues for Nearly Double

Scott Bright, a Washington state resident, is suing Kalshi for at least $580,000, claiming the platform's sports betting led to his $308,000 loss. Kalshi has denied wrongdoing, arguing that it was a neutral party in the exchange.

Bright argues that his trades, described as 'wagering' in his complaint, occurred at a time when Kalshi was prohibited from offering this type of product in the state. Washington has prohibited Internet gambling since 2006.

Washington Attorney General Nick Brown has filed a separate lawsuit against Kalshi, alleging that it has been offering unregulated gambling locally. Kalshi is trying to move Bright’s case to a federal court, where it believes it has jurisdiction.