Prediction Markets Heat Up, but Betting on Elections Remains Illegal in Washington State
Election Wagering Continues to Be Prohibited in Washington State in Light of Kalshi's Growth
In the ever-evolving world of prediction markets, platforms like Kalshi are gaining steam. However, Washingtonians thinking of throwing their hat in the prediction ring for election results should pump the brakes — the Washington State Gambling Commission (WSGC) is drawing a hard line: it's against the law.
Despite Kalshi's CEO, Tarek Mansour, boasting that the platform is akin to commodity markets on Wall Street where participants wager on their future event forecasts, the WSGC isn't budging. The primary issue lies in the monetary aspect of these transactions, as per MyNorthwest. Even with federal backing, any cash-for-predictions exchange is labeled illegal gambling by the WSGC.
All eyes were on Kalshi when it scored its first victory with the Federal Trade Commission (FTC)'s green light for political bets. Mansour highlights Kalshi as a "prediction market," claiming it offers a more accurate gauge of public sentiment than traditional polling methods.
The state's response to this news has been resolute. As Troy Kirby, the Director of Communications for the WSGC, points out, the WSGC will come after any Washington residents found placing wagers on election results. This pronouncement comes on the heels of Kalshi's disclosure of $130 million in trades on the upcoming presidential election by October 31. Kirby warns that any Washington player caught wagering on political outcomes could face penalties, even if they lose their bets.
Navigating the Tangled Web of Online Gambling Regulations
The disconnect between Kalshi's federal approval and various state laws presents a complex regulatory landscape for platforms like Kalshi. While Kalshi can legally operate nationwide, accepting only US dollars from domestic participants, it faces different levels of acceptance at the state level.
For example, in Idaho, election betting is considered a misdemeanor. As the regulatory environment for online gambling continues to fragment, platforms like Kalshi must tread carefully as they navigate these legal waters.
Despite Mansour's assurances of transparency and structure on Kalshi, critics remain skeptical about potential impacts on election integrity. However, supporters argue that adding money to the mix can make prediction markets more dependable than old-school surveys.
Ultimately, the WSGC's stance is crystal clear: election betting, no matter the guise, is forbidden in Washington. For residents, venturing into these markets comes with legal risks. The state has unmistakably made it known that residents should steer clear of these markets as they grow in popularity in the online prediction landscape.
Online gambling regulations in the United States are becoming increasingly complex, with platforms like Kalshi facing different levels of acceptance at the state level. For instance, while Kalshi can legally operate nationwide, it may run into issues in Washington, where election betting is considered illegal gambling by the Washington State Gambling Commission (WSGC).
Casino enthusiasts in Washington who are interested in casino-games or casino-and-gambling online might want to consider lotteries instead, as that seems to be the only form of gambling legally offered in the state. However, even lotteries may not be sanctioned for election betting, as per the WSGC's strict stance.
