Oregon class action lawsuit targets Kalshi over alleged illegal sports betting platform operations
Kalshi faces class action lawsuits in multiple states alleging its prediction market platform operates as illegal, unlicensed sports betting.Summary
Prediction market company Kalshi is embroiled in a series of class action lawsuits accusing it of operating an unlicensed sports betting platform. A recent federal lawsuit filed in Oregon claims Kalshi is running “an illegal online gambling enterprise” in violation of state law, seeking damages and restitution. Similar litigation is underway in New York and Alabama, arguing Kalshi misrepresents its services and profits from customer losses by offering event contracts that function like banned wagers. Kalshi maintains its platform offers financial derivatives regulated by the Commodity Futures Trading Commission (CFTC) and that federal law, not state gambling rules, applies. However, plaintiffs argue Kalshi’s affiliated market-making entities act like a sportsbook, and state gaming authorities in Massachusetts and Nevada have moved to restrict its sports event contracts, deeming them illegal gambling. Kalshi continues to contest these rulings, asserting jurisdictional issues.
(Source：Readwrite)