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The prediction market platform Kalshi faces a class-action lawsuit, accusing it of illegal operations.


According to Bloomberg, the prediction market platform Kalshi is facing a class-action lawsuit. It is accused of illegally operating a sports betting business without obtaining any state gambling licenses and misleading customers regarding its market-making activities.
The lawsuit was filed by seven Kalshi app users who commissioned the law firm Lieff Cabraser Heimann & Bernstein, claiming that the company falsely advertised providing "legal sports betting" services.
In addition, the lawsuit also accuses Kalshi's affiliate, Kalshi Trading, of acting as a market maker by setting odds unfavorable to customers, effectively making consumers bet against the "house." Kalshi, on the other hand, states that it is a derivatives market, regulated federally only by the Commodity Futures Trading Commission (CFTC).
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