Kalshi, Inc faces a class action lawsuit at the Kentucky Western District Court for allegedly providing illegal gambling services.

The relevant complaint was filed on May 11, 2026 by plaintiff Donovan Roberts.

The defendants are: Kalshi, Inc.; KalshiEX LLC; Kalshi Klear, Inc.; Kalshi Klear LLC; Kalshi Trading LLC; Susquehanna International Group, LLP; and Susquehanna Government Products, LLLP.

This statewide class action seeks to recover the losses of Kentucky residents who have allegedly participated in illegal gambling on the website Kalshi.com, pursuant to the state’s gambling loss recovery statute, Section 372.020 of the Kentucky Revised Statutes. This statute is intended to deter gambling by allowing Kentuckians to recover amounts they lost in illegal gambling.

The complaint alleges that the gambling that takes place on Kalshi.com, a website that allows people to take out “futures contracts” on the outcomes of elections, sports contests, the weather, and other world events. The plaintiff claims that Kalshi’s “prediction market”

is nothing more than gambling, and it is untaxed, unregulated, and illegal in Kentucky.

The complaint states that Kalshi is one of many companies offering the ability for gamblers to satisfy their gambling addiction 24-hours-a-day, 365-days-a-year, without having to leave their homes or workplaces. On Kalshi and similar sites, they can place bets for real money from home, work, restaurants, the grocery store, while on vacation, and anywhere else where the gambler’s device can receive signal.

While Kentucky allows sports betting in certain heavily-regulated contexts, Kalshi does not follow any of these regulations. Unregulated sports betting is illegal in Kentucky.

According to professionals who study the issue and treat gambling addicts, gambling causes many social and familial harms, including financial stress, relationship breakdown, family violence, mental illness, and suicide.

Further the complaint refers to anecdotal reports of gambling addictions in connection with online gambling and apps like Kalshi’s are buttressed by recent scientific studies that confirm that such apps appeal to gambling addicts in much the same way as real Las Vegas-style casinos, and have a particular appeal to teenagers.

To protect its citizens from these harms, Kentucky heavily regulates gambling, and prohibits unregulated gambling within its borders.

Plaintiff, Donovan Roberts, seeks to recover for individuals throughout Kentucky, including in his home county of Jefferson County.