OG sues Washington after Kalshi ruling

Crypto platform OG, managed by Crypto.com, has filed a lawsuit against the state of Washington in federal court. This came after the state obtained a preliminary injunction against Kalshi. OG aims to prevent the possibility of similar actions against their platform, which is under federal regulation. They argue that successful actions by Washington against Kalshi and public statements create a threat of potential prosecution.

Consequences of Washington's Victory over Kalshi

The suit was filed on July 22, two days after the court's decision on Kalshi. The court stated that Washington is likely to prove that Kalshi's contracts violate the state's gambling laws. The court also rejected the operator's arguments regarding federal preemption.

OG points to guidance issued in December 2025 recognizing prediction markets as "unauthorized," and the state's participation in multistate regulatory initiatives.

Emphasis on CFTC's Intervention in Michigan

The lawsuit highlights the U.S. Commodity Futures Trading Commission (CFTC)'s intervention in Michigan. On July 14, the CFTC issued an emergency order requiring Kalshi to fulfill trading obligations to clients from Michigan.

OG argues that the order illustrates how actions by individual states can violate federal regulations. This leads to conflicts with federal obligations for equal market access and orderly trading.

Defending the Commercial Use of Sports Event Contracts

The lawsuit pays significant attention to explaining why contracts on sporting events are legitimate financial instruments. Examples of companies that could benefit from such contracts include:

• Television networks whose advertising revenue depends on viewership.
• Retailers of team merchandise.
• Hotels and travel companies whose occupancy increases during events.
• Restaurants and bars near sports complexes.
• Companies conducting promotions related to sports.
• Fantasy sports operators and sports data providers.

Thus, OG asks the federal court to declare Washington's measures unlawful and to permanently prohibit any prosecution of their company or contracts.