🚀 Kalshi Inc. Faces Lawsuit Over Alleged Illegal Sports Betting Operations
#KalshiInc #lawsuit #illegalbetting #sportsbetting #classaction #gamblingregulation #CFTC #marketmaker #federalregulation #predictionmarkets #stategamblinglaws #legalchallenges #derivativesmarket
According to ChainCatcher, prediction market platform Kalshi Inc. is facing a class-action lawsuit accusing it of operating illegal sports betting without state gambling licenses and misleading customers about its market-making activities. The lawsuit, filed by seven Kalshi app users, alleges that the company falsely claimed to offer 'legal sports betting' services.
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 maintains that it operates as a derivatives market, subject only to federal regulation by the Commodity Futures Trading Commission (CFTC).
This lawsuit is the latest in a series of legal challenges for Kalshi. Previously, a federal judge in Nevada ruled that the company should be subject to state regulation, stating that 'event contracts based on sports outcomes do not fall under the exclusive jurisdiction of the CFTC.' Currently, at least five courts across the United States are addressing disputes between prediction markets and state gambling regulations.#KalshiInc #lawsuit #illegalbetting #sportsbetting #classaction #gamblingregulation #CFTC #marketmaker #federalregulation #predictionmarkets #stategamblinglaws #legalchallenges #derivativesmarket
🚀 Massachusetts Court Halts Kalshi's Sports Prediction Markets
#Massachusetts #Kalshi #SportsPredictionMarkets #CourtRuling #CFTC #EventContracts #StateGamblingLaws #Polymarket #PredictionMarket #LegalAction #US
A Massachusetts judge has issued a preliminary injunction against Kalshi, mandating the cessation of its sports-related prediction markets in the state. According to NS3.AI, Kalshi argues that its event contracts are not sports bets and fall under federal regulation by the Commodity Futures Trading Commission (CFTC), rather than state gambling laws. This ruling represents the first court order of its kind against a prediction market platform in the United States and may signal potential similar actions against other platforms, such as Polymarket.#Massachusetts #Kalshi #SportsPredictionMarkets #CourtRuling #CFTC #EventContracts #StateGamblingLaws #Polymarket #PredictionMarket #LegalAction #US