Kalshi asks federal court to move Washington gambler's $308,000 suit

Scott Bright, a Bellevue, Washington resident, filed suit in King County Superior Court on September 24 seeking recovery of losses he says he incurred on Kalshi between June 17 and August 14 of this year. Bright transferred $315,353.94 to the platform across 253 separate debits and alleges net losses of approximately $308,000, plus $5,589.05 in funding fees collected by Kalshi on those transfers.

Bright's lawsuit invokes Washington's Recovery of Money Lost at Gambling Act, which has prohibited internet gambling in the state since 2006 and provides a private right of action against operators. In an October 30 motion, Kalshi asked that the case be removed to US District Court for the Western District of Washington, arguing that the contracts at issue are event contracts governed exclusively by the Commodity Exchange Act and subject only to federal CFTC oversight.

Kalshi's motion further argues that Bright does not allege he was misled about platform mechanics, fees, or risk, and that his losses do not constitute gambling losses under applicable law.

The case is the first known instance of an individual bettor seeking restitution through private litigation rather than through a state attorney general's action. Washington's AG has separately sued Kalshi and already secured a court order restricting the platform's offerings in the state, though that order took effect after the period covering Bright's losses.