Kalshi faces class-action lawsuit over alleged illegal betting

A class-action lawsuit threatens Kalshi, a prediction market competitor to Polymarket, accusing it of illegal betting disguised as event contracts. The lawsuit, filed in New York, could dismantle Kalshi's business model if its "event contracts" are deemed illegal gambling, signaling a potential challenge for the entire prediction market industry. This action follows a Nevada ruling that Kalshi's sports contracts fall under state gambling laws, not just federal derivative regulations, potentially classifying the platform as an illegal bookmaker.