Kalshi faces lawsuit over alleged unlicensed sports betting and market manipulation

Kalshi is facing a proposed class action lawsuit from users who claim the prediction market operates as an unlicensed nationwide sports betting platform, deceptively labeling sports wagers as "event contracts." The complaint alleges that Kalshi violated state gambling laws by offering bets on sports outcomes, which are distinct from permissible derivatives used for economic hedging. Plaintiffs assert that Kalshi marketed the platform as legal in all 50 states while ignoring warnings from regulators in several states, and that sports betting now constitutes the majority of its volume, contributing to its high valuation. The lawsuit seeks refunds for users' wagers and penalties for alleged violations of gambling and consumer protection laws.

(Source：Crypto Briefing)