A Washington man lost $308,000 betting on Kalshi — now he's suing for $580,000, saying it never should've let him

Bright is asking for more than $580,000 — which includes both the $308,000 in losses as well as the winnings he recycled into additional wagers, which he then lost.

Seeking to dismiss

Kalshi has since filed a response to the lawsuit, seeking to dismiss it.

Bright, the company said, did not lose money gambling, but instead lost it on “event contracts,” something that can only be regulated by the federal government, not the state. In addition, Kalshi says Bright knew that losing money was possible while he continued to utilize the platform.

“Plaintiff alleges that his activity on the platform was gambling and that he ‘lost.’ He does not allege that anyone misled him about how the platform worked, what it charged or the risk that any position might lose,” Kalshi wrote in its response. “Yet, he now sues KalshiEX and its parent, Kalshi Inc., to recover nearly double his own alleged net realized loss.”

Kalshi, in addition to seeking to dismiss the case, also filed a motion to stay, which would pause proceedings until the U.S. Supreme Court decides whether to hear a separate case that centers on whether state gambling laws apply to prediction markets.

A separate suit by the state of Washington resulted in a preliminary injunction that forced the company to geofence the state and stop accepting several types of wagers. Bright transferred cash into his Kalshi account before those took effect.

Many losers, few winners

Prediction markets tout their winners in marketing, but just like traditional gambling, users are more likely to lose.