Washington State sounds alarm over the legality of political betting

Washington State has joined the ranks of states to warn US voters about the upcoming presidential election, with the state’s gambling watchdog cautioning people against participating in political betting of any sort.

Washington State says political betting of any sort is illegal

The reason is simple – political betting is illegal in the state and any platform that claims otherwise is misleading players. The Washington State Gambling Commission insists that residents should avoid any websites that offer them the opportunity to gamble, but in the case of Kalshi, a prediction market platform there may be an exception, as there seems to be no legal deterrent to the platform's political "prediction markets," which are not the same as betting, Kalshi similarly insists.

The regulator seems to be taking a dim view of Kalshi which is using its alternative formula to offer "bets" on the outcome of the presidential election and other political races.

Although Kalshi has won a legal win, which allowed it to launch its prediction markets – which the platform insists are not commercial gambling – many onlookers continue to describe the product as just that.

At the same time, The Washington State Gambling Commission seems to be similarly opposed to prediction markets as it is against commercial betting on politics, which it seems to consider to be the same thing.

Washington State insists that Kalshi’s offer is not as of yet legal in the state and should be avoided altogether. A similar statement was issued by the Connecticut Department of Consumer Protection, which cautioned residents against betting and gambling on the outcome of the election, as there are no legalized platforms in-state to offer this product.

Kalshi’s way – do prediction markets pass muster?

Kalshi has defeated the Commodity Futures Trading Commission in court recently, launching its prediction markets. It was the platform who went after the regulator after a year of equivocation on the part of the watchdog, and who ultimately won.

Kalshi is based on the prediction market model, which is also utilized by pollsters and researchers to track public sentiment and get actionable insight into public opinion in the election.

However, many detractors blast the platform for undermining the sanctity and fairness of the electoral process and want it blocked. For the time being, though, state regulators are only issuing a warning to their residents, rather than going for blood. With only hours left before Election Day, this is understandable.

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