Washington man sues Kalshi to recover $580,545 in alleged gambling losses
Scott Bright sued Kalshi under Washington state law RCW 4.24.070 seeking $580,544.98 in losses on sports event contracts. Kalshi removed the case to federal court and filed a motion to stay proceedings. The lawsuit frames the contracts as gambling and invokes a Washington statute that allows losers to recover gambling losses from winners or operators.
Tests whether state gambling-recovery statutes can reach CFTC-regulated event contracts, with a federal stay suggesting Kalshi will argue federal preemption under the Commodity Exchange Act.
Joins civil and criminal actions in Ohio, Tennessee, Nevada, Utah, Missouri, Louisiana, and Arkansas that Kalshi now faces across parallel state courts, after federal preemption shields failed in the Second and Sixth Circuits.