Kalshi was approved for margin trading on the same day Washington’s attorney general sued it for running an illegal gambling operation.
The prediction market platform secured a futures commission merchant license through an affiliate called Kinetic Markets LLC. The license would let institutional users open positions without posting the full amount of capital, a feature hedge funds have been waiting for.
Kalshi CEO Tarek Mansour said a margin product would be coming “soon.” He noted capital efficiency is the main barrier keeping institutions off the platform.
Hours later, Washington Attorney General Nick Brown filed a lawsuit alleging Kalshi violates the state’s Gambling Act and Consumer Protection Act by allowing residents bet on sports, elections, and events, including Iran war outcomes and measles case totals.
Washington Joins The Legal Pile-On
Washington is at least the 20th jurisdiction to take legal action against Kalshi. Arizona filed criminal charges earlier …
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