COINOTAG News, according to Bloomberg on December 1, reports that Kalshi, a prediction market platform, faces a collective lawsuit from seven app users. Led by Lieff Cabraser Heimann & Bernstein, the complaint alleges that Kalshi marketed its services as legal sports betting without a state gambling license and misrepresented its market-making activities.
The suit contends that Kalshi Trading, the affiliate acting as a market maker, set odds unfavorably to users, effectively turning trades into bets against the house. Kalshi has stated the business falls under the derivatives market and is subject to federal oversight by the CFTC, rather than state gambling regulation.