OG Sues Washington Over Prediction Market Regulation Threats

Crypto.com's prediction market platform OG has taken Washington to court in a federal lawsuit. The lawsuit was filed on July 22, 2026, just two days after a Washington court ruled Kalshi's operations as illegal gambling.

The complaint argues that the state of Washington is threatening OG's business and its users by enforcing their laws on federally regulated products. According to the Commodity Exchange Act, states are blocked from applying their laws on federally regulated prediction markets.

OG claims that it is regulated by the Commodity Futures Trading Commission (CFTC) and that the federal government has exclusive authority to regulate prediction markets. The lawsuit requests declaratory and injunctive relief against AG Nick Brown and WSGC members, stating that there is an imminent risk of enforcement action against its platform.

The complaint further claims that state enforcement directly conflicts with the federal regulatory framework that supervises Designated Contract Markets (DCMs) and may affect the impartial and orderly event trading. OG argues that a declaratory judgment and injunction are necessary to prevent Defendants' unlawful intrusion into a market which they have no legal authority to regulate.