Washington state is urging a federal judge to dismiss Underdog’s lawsuit, which challenges the state’s jurisdiction to enforce its gambling regulations against the company’s prediction market.

The state argues that the recent Ninth Circuit ruling in KalshiEX v. Assad undermines Underdog’s position. On October 28, Attorney General Nick Brown and officials from the Washington State Gambling Commission submitted the motion in the U.S. District Court for the Western District of Washington.

According to the state, Underdog’s assertion that its sports-based event contracts fall outside the reach of Washington’s gambling laws is invalid based on the Ninth Circuit’s findings, as reported by Law360. Underdog Exchange DCM Inc. and UDM LLC, which operates as Underdog Predict.

Their complaint contends that Underdog functions as a CFTC-designated contract market, having begun to offer its event contract listings in Washington under that designation on July 17, 2026, and securing CFTC certification for numerous event contracts between July 12 and September 2.