Overview
- Seven named plaintiffs filed the proposed suit in the Southern District of New York seeking refunds of wagers, class certification nationwide, a jury trial, and potentially tripled damages.
- The complaint says Kalshi runs unlicensed sports betting disguised as event contracts and that customers often face Kalshi’s own market-making arms or partners like Susquehanna on the other side of trades.
- Plaintiffs allege sports markets now dominate the platform, citing roughly 90% of September volume and about $2 billion in wagers as sports bets.
- Kalshi rejects the claims, asserting it operates legally as a federally regulated designated contract market and calling the lawsuit a misunderstanding and “meritless fiction.”
- State actions have accelerated after a Nevada court vacated Kalshi’s earlier protection, with officials in Ohio and New Jersey invoking that decision as they seek to block the company’s sports markets.