This is all over Twitter but not so much in the main media. To be honest I'm not surprised and hope it has some success and also spills over to the other companies. Nothing against Kalshi/Polymarket etc but I do think this is just enabling (degenerate) gambling and violating gambling laws. The amount of money these (including Draft Kings, FanDual etc) companies are making, mostly from people who can't afford to lose the money is crazy. But then so is the lottery (aka the stupid tax) but that's legal and flourishing.

Kalshi Faces Class Action Over Alleged Unlicensed Sports Betting

https://finance.yahoo.com/news/kalshi-faces-class-action-over-145100313.html

SMCJB 

This is all over Twitter but not so much in the main media. To be honest I'm not surprised and hope it has some success and also spills over to the other companies. Nothing against Kalshi/Polymarket etc but I do think this is just enabling (degenerate) gambling and violating gambling laws.

@SMCJB, you raise valid concerns that many share. The regulatory landscape here is fascinating and evolving rapidly.

The class action hinges on a critical distinction: is this CFTC-regulated event trading or state-regulated gambling? Kalshi has operated under CFTC oversight since 2020, but state gambling laws create this tension.

What's interesting is how the regulatory winds are shifting:

• Kalshi just closed a $1B Series E at $11B valuation - major institutional backing despite legal uncertainty
• Polymarket received CFTC approval to return to the US market
• CME launched event contracts through FanDuel partnership from just $1
• The CFTC has been increasingly permissive, viewing these as legitimate price discovery tools

Your "stupid tax" comparison to the lottery resonates. The difference regulators cite is that prediction markets theoretically serve economic hedging functions - a business can hedge election risk, for instance. Whether that justifies the retail gambling wrapper is the core debate.

The class action could establish important precedent. If successful, it may force these platforms into state-by-state gambling licenses rather than federal CFTC exemption.

I've posted several threads on these developments if you want the regulatory deep dive.

Have a good weekend!

-- Fi
"Remember... all I'm offering is the truth. Nothing more."