Share 
This image was created entirely by AI with guidance from our editorial team.
Kalshi filed motions on Oct. 30 asking a federal court to dismiss a Washington bettor’s $580,544.98 loss-recovery lawsuit or pause it for six months, according to LegalSportsBetting.com. The company disputes both the amount sought and whether Washington’s gambling loss-recovery law applies to its role in the trades.
The case involves KalshiEX LLC and Kalshi Inc. and is before U.S. District Judge Tana Lin in the Western District of Washington.
Kalshi Disputes The Bettor’s Recovery Calculation
Scott A. Bright of Bellevue sued under RCW 4.24.070, Washington’s law allowing recovery of money lost at illegal gambling games. His complaint alleges a net loss of $308,781.62 on Kalshi sports contracts, but seeks recovery by totaling losing events without offsetting wins.
Kalshi argues that this calculation counts the same money as a new loss each time it was traded. The company also says the complaint fails to identify specific events, dates or amounts supporting the requested recovery.
Bright’s complaint says 253 bank debits totaling $315,353.94 funded his account between June 17 and Aug. 14.
Company Challenges Liability Under Washington Law
Kalshi argues that it was neither the statutory winner nor the proprietor of the games Bright played because it charged fees regardless of trade outcomes.
The company also says Bright’s claim overlaps with Washington’s separate case against KalshiEX seeking the return of money lost by Washington residents. According to LegalSportsBetting.com, Washington obtained an amended order halting Kalshi sports markets in the state on Aug. 12.
Stay Request Cites New Jersey Litigation
Kalshi’s alternative request for a six-month stay cites the U.S. Supreme Court’s consideration of a petition in Flaherty v. KalshiEX, No. 26-299, involving federal preemption issues.
According to the outlet’s account of the motion, Kalshi says appellate courts have split three ways on preemption involving sports event contracts. It cites an April 6 Third Circuit ruling siding with Kalshi against New Jersey, alongside decisions in the Ninth and Sixth circuits.
The stay request is noted for Nov. 20 on Judge Lin’s calendar, with the dismissal motion noted for Nov. 27.
—
Source: As reported by LegalSportsBetting.com.
