Kalshi's Shady Sports Bets: Is It Really Legal?

Kalshi, a prediction market, is in hot water. A lawsuit claims it's running an illegal sports betting platform. The platform calls bets "event contracts. " But the lawsuit says these are just bets. And they're illegal in many states. The lawsuit says Kalshi is tricking people. It makes them think they're betting against other users. But really, they're betting against Kalshi. That's like a casino. But Kalshi doesn't have a gambling license. In New York, that's against the law. Kalshi's ads say it's "Legal in 50 states. " But the New York State Gaming Commission disagrees. It told Kalshi to stop. But Kalshi kept going. It's still taking bets from all over the U. S. Kalshi started small. It offered simple yes-or-no bets. Like "Will there be a recession? " It said it was different from casinos. It charged fees, not taking money from losses. But then it changed. It started offering political bets. And people loved it. In October 2024, over $100 million was bet on elections. Then, in January 2025, Kalshi got greedy. It started sports betting. It called it "sports trading. " But it's the same as betting on point spreads or parlays. Kalshi is just using different words. The lawsuit says this is illegal gambling. And it's hurting people. The plaintiffs want their money back. They want Kalshi to pay for their losses. And they want a jury to decide. Kalshi's actions are under scrutiny. Is it really legal? Or is it just a shady betting operation?