Kalshi Faces Class-Action Lawsuit Over Alleged Illegal Sports Betting Operations
Kalshi, a platform that recently surged to an $11 billion valuation, is now embroiled in legal turmoil. A proposed class-action lawsuit alleges the company operated an unlicensed sports betting operation while misleading users about its legality. The plaintiffs claim Kalshi disguised traditional sports wagers as regulated "event contracts," violating state gambling laws.
The complaint paints a picture of systemic advantage for professional market makers at the expense of retail participants. "When consumers place bets on the platform, they face off against money provided by a sophisticated market maker," the filing states, drawing parallels to casino-style house advantages. Despite warnings from state regulators, Kalshi allegedly continued operations without proper licensing.
