Kalshi Faces Legal Battles Amidst Expansion in Prediction Market Arena

Kalshi, a rapidly growing player in the prediction market space, is embroiled in a major lawsuit stemming from its alleged operation of an unlicensed sportsbook. Seven customers allege that the company misrepresented itself as a regulated financial exchange while running an unauthorized sports betting platform. They claim Kalshi used deceptive language to suggest its sports markets were legal across all states and encouraged users to wager similar to traditional sports betting, leading to a potential lawsuit seeking compensation for lost bets.