Kalshi Lawsuit Sparks Controversy over Legal Sports Betting Claims

A lawsuit has raised questions about the legality of Kalshi, a platform offering prediction markets for sports and other events, accusing it of engaging in illegal gambling and market manipulation. The company denies these claims, emphasizing its compliance with CFTC regulations and arguing that the lawsuit is motivated by competition. The dispute emerges during a period of rapid growth for Kalshi, including securing a $1 billion funding round, soaring trading volume, and partnerships with Coinbase for USDC custody.