Kalshi Faces Lawsuit for Illegal Sports Gambling and Market Manipulation

Kalshi is currently facing a lawsuit for allegedly engaging in illegal sports gambling and market manipulation. The company is accused of advertising "legal sports betting" without holding any gaming license in the US. Customers reportedly face disadvantages due to betting lines set by sophisticated market makers.

Kalshi has denied these accusations, asserting its operation as a federally regulated derivatives exchange under the CFTC.
Despite legal troubles, Kalshi has achieved significant growth, recently raising $300 million in a Series D funding round at a $5 billion valuation.
Google has integrated prediction market data from Kalshi and Polymarket into its search results as part of its AI-driven finance strategy.