Crypto.com's OG sues Washington state after Kalshi injunction
Crypto.com's event contract platform OG sued Washington state officials in federal court on July 22. The U.S. District Court for the Western District of Washington filing seeks to block state enforcement action against OG. The lawsuit follows a King County Court preliminary injunction against Kalshi that halted its sports event contracts in the state. OG is owned by North American Derivatives Exchange, a Crypto.com subsidiary.
OG's lawsuit tests whether Kalshi's preemption loss in Washington state court can be reversed at the federal level for a different platform. A federal win for OG would create a split precedent that weakens state gambling enforcement across multiple jurisdictions where Kalshi already lost. For Crypto.com, the suit is a defensive move: OG must block Washington before the state files its own action, copying the pattern that hit Kalshi in Michigan, New York, Illinois, and New Mexico.
The King County Superior Court judge rejected federal preemption for the second time in Kalshi's case, so OG's federal judge faces the identical question with fresh arguments. Traders on both platforms now face the same voiding risk if state courts keep prevailing. A federal appellate ruling is the only path to uniform law, but the Second Circuit has not yet scheduled Kalshi's appeal. Each new state filing shrinks the window for that single federal shield to hold.
OG becomes the second CFTC-registered prediction market platform to sue Washington state within a week, joining Kalshi's preemption fight after a King County Court judge rejected federal preemption for the second time.