According to Foresight News , citing Bloomberg, prediction market platform Kalshi is facing a class-action lawsuit. It is accused of illegally operating a sports betting business without any state gambling license and misleading customers regarding its market-making activities. The lawsuit, filed by seven Kalshi app users with the law firm Lieff Cabraser Heimann & Bernstein, alleges that the company falsely claimed to offer "legal sports betting" services. Furthermore, the lawsuit accuses Kalshi's affiliated company, Kalshi Trading, of setting unfavorable odds for customers, effectively putting consumers at odds against the "bookmaker." Kalshi maintains that it operates a derivatives market and is only subject to federal regulation by the U.S. Commodity Futures Trading Commission (CFTC).
Prediction market platform Kalshi faces a class-action lawsuit accusing it of illegal operations.
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