Kalshi Faces New Lawsuit as the State of Oregon Challenges Prediction Markets Under Gambling Laws
The post Kalshi Faces New Lawsuit as the State of Oregon Challenges Prediction Markets Under Gambling Laws appeared on BitcoinEthereumNews.com.
Regulations Kalshi, the CFTC-regulated prediction market platform, is facing a new federal class action lawsuit in Oregon, intensifying an already sprawling legal battle across the United States. Key Takeaways Kalshi faces a new federal class action in Oregon alleging illegal gambling operations. Nearly 20 legal challenges are pending across multiple U.S. states. The CFTC has filed amicus briefs asserting exclusive federal jurisdiction. Conflicting court rulings may push the dispute toward Supreme Court review. The suit accuses the company of operating an “illegal online gambling enterprise” in violation of Oregon’s prohibition on non-state-run gambling and seeks double damages under the state’s loss recovery statute. The Oregon case adds to nearly 20 ongoing legal actions and enforcement efforts across states including Nevada, New Jersey, Maryland, Massachusetts, Ohio, New York, Connecticut, and Tennessee. At the center of the conflict lies a fundamental jurisdictional question: Are prediction market contracts financial derivatives regulated by federal law or are they unlicensed gambling products subject to state gaming statutes? Federal Oversight vs. State Gambling Authority Kalshi operates as a Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange, offering event contracts tied to political outcomes, economic indicators, and more recently, sports results. Following a 2024 legal victory that allowed political event contracts, the company expanded into sports-linked markets, triggering swift resistance from state regulators. States argue that sports-related event contracts function as de facto betting products and circumvent state licensing regimes. Kalshi counters that its contracts qualify as “swaps” under the Commodity Exchange Act (CEA), placing them squarely within federal oversight and preempting state gambling laws. The CFTC has reinforced this argument through amicus briefs in multiple cases, asserting exclusive jurisdiction over designated contract markets like Kalshi. The Oregon Class Action The newly filed federal lawsuit in Oregon alleges that Kalshi violates state statutes prohibiting non-state-run gambling operations. Plaintiffs…
Filed under: News - @ February 21, 2026 9:29 pm