Crypto.com's OG sues Washington state in federal court after Kalshi injunction
Crypto.com's prediction market platform OG sued Washington Attorney General Nick Brown and the Washington State Gambling Commission in federal court. The July 22 filing came two days after a King County Court judge issued a preliminary injunction blocking Kalshi from offering sports event contracts in Washington. OG, operated by Crypto.com subsidiary North American Derivatives Exchange (Nadex), argues that its federally regulated status preempts state-level restrictions. The lawsuit seeks to shield OG from enforcement action targeting its event-contract offerings.
OG's preemptive strike forces Washington to defend its authority in two courts at once. The state now faces Kalshi's state-court appeal and OG's federal preemption claim simultaneously, splitting legal resources and creating conflicting rulings. For Polymarket, the identical federal registration means OG's success would directly bolster its own defense in any future state action.
The dual-track strategy also tests whether CFTC-regulated platforms can short-circuit state enforcementforum-shopping into friendlier federal benches before judges even act. A federal ruling for OG would undermine the King County injunction against Kalshi, while a loss would confirm that CFTC status alone buys no immunity. Either outcome reshapes how platforms calculate legal budgets across the fifty-state map.
OG becomes the second CFTC-registered platform to sue Washington state after Kalshi, joining the running federal-state preemption fight that now spans Michigan, New York, Minnesota, and Washington.