Man who lost $308,000 on sports bets sues Kalshi for offering illegal gambling
Lawsuit demands Kalshi return losses because online betting is illegal in Washington.
TL;DR
- Scott Bright, a Washington resident, is suing Kalshi for over $580,000 after losing $308,000 on sports bets.
- Bright alleges Kalshi violated Washington's ban on online gambling, seeking restitution under state law.
- Kalshi contends its "event contracts" are regulated by federal law (CEA and CFTC) and are not gambling.
- The lawsuit seeks to recover losses, with Bright calculating his claim based on an "event-by-event" basis from a 1950 ruling.
- Kalshi has filed a motion to dismiss the case and transfer it to federal court, also seeking a stay pending a Supreme Court decision on similar matters.
- Washington state is also pursuing legal action against Kalshi, having obtained a preliminary injunction restricting certain wagers.
- Bright's lawsuit claims Kalshi's trading affiliate may have taken the opposite side of his wagers, challenging Kalshi's claim of neutrality.
- A previous Ninth Circuit ruling stated that sports bets, regardless of naming, are still gambling, potentially supporting Bright's case.