Mars Finance reported on December 1st that, according to Bloomberg, prediction market platform Kalshi is facing a class-action lawsuit, accused of operating sports betting without any state gambling license and making misleading statements to users regarding market-making activities. The lawsuit, filed by seven Kalshi app users with the law firm Lieff Cabraser Heimann & Bernstein, alleges that Kalshi falsely advertised its service as "legal sports betting," and that its affiliated company, Kalshi Trading, set unfavorable odds for users as a market maker, effectively turning trading into a bet against the "bookmaker." Kalshi responded that its business falls under the derivatives market and is only subject to federal regulation by the U.S. Commodity Futures Trading Commission (CFTC).
Kalshi is facing a class-action lawsuit, accused of operating a sports betting business without a license.
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