"The complaint argues that the platform's event contracts, which allow users to trade on outcomes including sports games, function the same way as banned wagers. According to the filing, consumers who lose money on those contracts are being harmed. Reynolds is seeking damages and restitution for a proposed class, along with a declaratory judgment and a jury trial. The Oregon case joins similar litigation already moving through courts elsewhere."
"In New York federal court late last year, another proposed class action accused Kalshi of presenting itself as a lawful "prediction market" while in reality offering unlicensed sports betting. The lawsuit, brought on behalf of thousands of users, contends the company misrepresented how its markets worked and profited from customer losses. "By operating unlicensed sports betting, Kalshi has violated gambling laws, engaged in illegal deceptive activity, and unjustly enriched itself at the expense of tens of thousands of consumers," the complaint states."
"In Oregon, a new federal class action lawsuit filed on Friday (February 20) by plaintiff Ian Reynolds claims Kalshi and related entities are running "an illegal online gambling enterprise" under state law. NEW: Kalshi has been hit with a federal class action lawsuit in Oregon for operating an "illegal online gambling enterprise" in violation of Oregon law, which bans all non-state-run gambling-related activities within its borders. Seeks 2x damages under OR's loss recovery statute. pic.twitter.com/cUCgnSVHGY- Daniel Wallach (@WALLACHLEGAL) February 21, 2026"
Kalshi, a prediction market company, faces a string of federal class action lawsuits alleging it operates unlicensed sports betting across multiple states. An Oregon suit by Ian Reynolds accuses Kalshi of running an "illegal online gambling enterprise" under state law and seeks double damages, restitution, a declaratory judgment, and a jury trial. The complaint asserts event contracts that let users trade on outcomes including sports function as banned wagers and harm losing consumers. A New York proposed class action similarly claims Kalshi misrepresented its markets as lawful prediction markets while offering unlicensed sports betting and profited from customer losses.
Read at ReadWrite
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