KALSHI HIT WITH CLASS-ACTION

Summary from the TLDR Crypto newsletter

Kalshi is facing a nationwide class action lawsuit alleging it operates an illegal sports betting platform by positioning institutional market makers, including Kalshi Trading and Susquehanna, as "the house" with zero fees, enhanced access, and position limit advantages while misleading customers that they're betting peer-to-peer. The complaint claims 90% of September's $2 billion volume came from sports betting despite running ads falsely stating "legal sports betting in all 50 states" and targeting college campuses through KalshiU partnerships with a 15-year-old gaming influencer. Plaintiffs seek treble damages, restitution, and injunctive relief across a nationwide class and 30 state subclasses, including California and Florida, where Kalshi allegedly violates Penal Code 337a, which bans pool selling and bookmaking. The lawsuit argues Kalshi disguises gambling as "sports trading" and "build your combo" parlays while enabling addictive behavior without the safeguards required by regulated sportsbooks.