A class action lawsuit has been filed against Kalshi, a prediction market platform, alleging illegal sports betting activity exceeding $2 billion in disputed volume. The lawsuit claims Kalshi operated as an unlicensed sportsbook, misleading users about its business model. State and tribal regulators have joined the legal battle, citing violations of gambling laws and issuing cease-and-desist orders until proper licensing is secured. The lawsuit raises concerns about the legality of prediction markets and their regulatory framework, with potential implications for similar platforms in the future. While Kalshi’s primary focus is on fiat currency transactions, this action has prompted legal scrutiny regarding the company’s operations. The case reflects a growing trend of challenges to unregulated prediction market platforms, including recent actions against similar companies in Nevada. This lawsuit highlights how regulatory landscape may evolve for these platforms and their potential impact on broader markets.