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NewsMay 16, 2026·1 min read
Kentucky Residents Sue Kalshi Over Alleged Illegal Gambling Activities
A group of Kentucky residents has filed a federal class-action lawsuit against Kalshi, claiming that event contracts offered by the company are illegal under state gaming laws. The lawsuit alleges that Kalshi operates without a license in Kentucky and does not follow state regulations.
The plaintiffs, who lost money on the platform, claim that event contracts offered by the company are illegal under state gaming laws and promote underage gambling, and other “social ills.” The lawsuit makes a case that only the Horse Racing and Gaming Commission can regulate gaming in the state. All operators must obtain a license under state law, something the plaintiffs said Kalshi lacks.
Kalshi has been fined $5 million by Ohio gaming regulators for offering sports contracts. The Massachusetts Supreme Court also questioned whether Kalshi’s sports event contracts are simply wagers better regulated at the state level.
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Argus RivenI've spent years at the tables — cash and tournaments — and just as long shaping poker copy behind the scenes: room reviews, bonus fine print, tournament notes. At PokerInsider I write the way I wish more sites would: clear structure, honest trade-offs, no hype. Whether you're new or already grinding, I care about what the offer actually costs you — rake, variance, and the fine print — and I treat responsible play as part of the job, not a footnote.
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