“Futures contracts” offered by Kalshi on election results, sports and the weather are illegal under Kentucky law, feed gambling addictions and promote “social ills” that harm adults and minors alike, according to the federal lawsuit filed by a resident of the Bluegrass State.
Kalshi Inc., founded by MIT graduates Tarek Mansour and Luana Lopes Lara, launched its web-based prediction market platform in July 2021 and allows users to buy and sell what it calls “event contracts” based on real-world events like sports and politics.
The class of disgruntled users in Kentucky who filed suit Monday in federal court against Kalshi and various subsidiaries disagree with the company’s characterization of its services.
