"The lawsuit was filed Monday (May 11) in the U.S. District Court for the Western District of Kentucky. Plaintiff Donovan Roberts named Kalshi Inc., related business entities, and Susquehanna-connected firms as defendants. He claims the company has been operating what amounts to an online sportsbook without following Kentucky gaming laws."
"According to the complaint, Kalshi users can spend real money on contracts tied to elections, sports, weather, and other future events. Roberts argues the setup mirrors traditional gambling despite the company presenting the contracts as financial products. The filing says Kalshi's "prediction market" is "nothing more than gambling, and it is untaxed, unregulated, and illegal in Kentucky.""
"Roberts also claims the company allows users to "bet real money on everything from elections to tennis matches" outside the state's regulated sports wagering system. The complaint points out several examples from Kalshi's platform, including wagers tied to college football games, point spreads, total scores, and player touchdown props. Roberts argues those offerings resemble products available through licensed sportsbooks operating legally in Kentucky."
"The lawsuit says Kalshi attempts to characterize the contracts as federally regulated financial instruments overseen by the Commodity Futures Trading Commission. But the filing argues the contracts "are nothing more than thinly veiled illegal wagers based on the outcome of specific future events." Roberts says Kentucky law only allows sports betting through licensed and regulated operators supervised by the Kentucky Horse Racing and Gaming Corporation."
A Kentucky resident filed a proposed class action in federal court against Kalshi and related entities. The complaint alleges Kalshi offers online contracts that function like an online sportsbook for Kentucky residents. Users can spend real money on contracts tied to elections, sports, weather, and other future events. The plaintiff argues the contracts resemble traditional gambling and are untaxed, unregulated, and illegal under Kentucky gaming laws. The filing claims Kentucky permits sports wagering only through licensed operators supervised by the Kentucky Horse Racing and Gaming Corporation. It also alleges Kalshi characterizes the contracts as federally regulated financial instruments, but they are actually wagers on specific future outcomes.
Read at ReadWrite
Unable to calculate read time
Collection
[
|
...
]