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Washington State has banned prediction markets as interest in the platforms ramps up across the United States.
The Washington State Gambling Commission has officially banned prediction markets across the state, prohibiting either offering events-based contracts or participating with online operators that offer event-based contracts for purchase. That puts the onus on both users and operators to stop any related activity in Washington.
“Offering events-based contracts or participating in these markets is not authorized in Washington State,” reads the statement from the Washington State Gambling Commission.
“While prediction markets are an unauthorized activity in Washington State, we acknowledge that the future of prediction markets, including those for sports, political events, remains a subject of ongoing litigation both federally and in other states.
“We will continue to monitor the ongoing cases as they progress through the court system and will provide updates once the courts provide further guidance.”
The Commission went on to state that any Washington residents who want to gamble on sports should do so at tribal casinos, where sports betting is legally authorized.
Is the door closed to prediction markets in Washington?
With the Gambling Commission’s note that it will “continue to monitor the ongoing cases”, it seems that Washington intends to follow other states’ leads when it comes to authorizing prediction markets. The line between events contracts and gambling is getting increasingly blurred, especially as major players like Kalshi continue to push into traditional fields like sports betting.
Washington has a history of protecting tribal groups’ exclusive gambling rights, as evidenced in a case earlier this year. At the same time, other states like Nevada and Connecticut are cracking down on prediction markets, with some government bodies and gambling groups viewing them as a means to circumvent traditional gambling regulations. As more newcomers join the ever-growing sector of prediction markets, the competition is likely to only heat up further.
Featured image: Wikimedia Commons, licensed under CC BY-SA 3.0
