Kalshi Hit With Class-Action Complaint Alleging 'Unlawful Gambling'
Kalshi faces a class-action lawsuit in New York alleging its sports event contracts constitute illegal gambling.Summary
Prediction market Kalshi is being sued in New York’s Southern District federal court, accused of operating an illegal sports gambling business. Plaintiff Daniel Yee alleges he was misled into believing Kalshi offered legal sports gambling contests, only to discover they were unlawful. Yee’s complaint argues Kalshi falsely claimed sports betting was legal in all 50 states and failed to comply with New York’s licensing requirements, impacting its operations nationwide.
The lawsuit contends Kalshi’s contracts qualify as illegal “banking games” under California law, where commercial gambling has been prohibited for over 150 years. Yee seeks a jury trial and the return of over $2,000 in losses, along with damages for the proposed class.
This case hinges on whether federal law governing futures markets preempts state regulations of sports prediction markets. Kalshi is currently involved in other legal battles with gaming regulators in Nevada and Ohio, further complicating its legal standing.
(Source：Casino.org)