[Kalshi Faces Class Action Lawsuit, Accused of Operating Unlicensed Sports Betting Business] Prediction market platform Kalshi is facing a class action lawsuit, accused of operating sports betting activities without obtaining any state gambling licenses and making misleading statements to users through market-making activities. The lawsuit, initiated by seven Kalshi users and filed by the law firm Lieff Cabraser Heimann & Bernstein, alleges that Kalshi promoted its services as 'legal sports betting' and that its affiliated company, Kalshi Trading, acted as a market maker by setting unfavorable odds, turning transactions into bets against the 'house.' Kalshi responded by stating that its business falls under the category of derivatives markets and is solely subject to federal regulation by the U.S. Commodity Futures Trading Commission (CFTC).