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A class action lawsuit has been filed in Alabama against Kalshi over what the plaintiffs claim is an illegal sports wagering website. Alabama is notoriously strict with its gambling laws, with it outright banned in most cases.
In this case, traditional sports betting is not permitted under state law. Platforms such as Kalshi and Polymarket operate by offering event-based contracts that are classified as trading activity rather than sports wagering. Because these products fall under federal commodities regulation, they are overseen by the CFTC instead of state gambling authorities, even though their structure and terminology may resemble aspects of betting.

NEW: Kalshi has been hit with a class action lawsuit in Alabama federal court for operating an illegal sports betting website. (AL has among the strictest anti-gambling laws in the US; more than 40 sweepstakes casino lawsuits already filed). This is the 1st PM case filed in AL. pic.twitter.com/lxR6hJSkpS
— Daniel Wallach (@WALLACHLEGAL) January 30, 2026

However, there might now be a new issue in the way of the class action lawsuit. In a new set of remarks by the CFTC Chairman, Michael S. Selig, indicates that the government body would now assist markets with legal problems in the country.
The move has been celebrated by the Coalition for Prediction Markets as well.
This marks the first time a case like this has been filed in Alabama, which sports betting lawyer Daniel Wallach points out is particularly litigious in the gambling scene. More than 40 lawsuits regarding sweepstakes casinos have been filed in the state, which again has a firm grip on banning most forms of gambling.
Kalshi in the firing line amid battle against prediction markets
Kalshi has come under fire from other sources across the country in recent months, as it pushes into sports betting. Under the guise of “sports contracts,” prediction markets have managed to infiltrate heavily controlled states regardless of the laws.
Washington banned prediction markets in December over similar concerns. Nevada has also stripped DraftKings and Flutter of their licenses to operate, as they drift further towards prediction markets.
Alabama has been cracking down heavily in 2025 on regular gambling, with multiple arrests over machines or illicit methods. It’s looking more and more likely that prediction markets could be getting the boot unless the CFTC enters the fray.
Featured image: Wikicommons
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The payments platform Paysafe suggests the 2026 FIFA World Cup will be a key moment for North America, as it says 60% of consumers plan to place bets online or via an app, with 19% planning to bet for the first time.
This year will see the significant sporting event return to U.S. soil for the first time since 1994, with Canada and Mexico being co-hosts. However, since its last foray in the United States, the World Cup is now being hosted at a time when sports betting is legal in many states.
According to the report, 64% of bettors will place wagers on the day of the game or during the match and 37% plan to bet more than usual. In the US, this figure reaches 51%.
Six in ten consumers plan to bet online or via an app during the World Cup. Credit: Paysafe
The survey has included 3,850 respondents, all of legal gambling age, who have an interest in following the upcoming soccer event, based across the UK, US, Canada, Brazil, Mexico, Ecuador, Peru, Germany, Spain, Italy, France, and Bulgaria.
While the event is in-person, the research suggests there could be a ripple effect as 58% plan to play soccer-themed video games during the tournament. At the same time, 56% of the participants expect to spend more on downloadable content, especially in the United States and United Kingdom.
49% of consumers who don’t follow soccer plan on betting on the World Cup, research states
The frequency of betting is also expected to increase during the tournament: “Among those planning to bet, 92% expect to wager either more than usual or about the same as their typical activity. Within this group, 37% plan to bet more than normal, with the United States leading at 51%. These figures reflect the unique excitement of the World Cup and how hosting influences betting activity.”
It’s thought that social factors could influence the amount bet too, with 60% of respondents saying they would join a group bet if a bet pool or pot was organized by a friend or coworker.
The match schedule will see games take place in Vancouver, Seattle, San Francisco Bay Area, Los Angeles, Guadalajara, Mexico City, Monterrey, Houston, Dallas, Kansas City, Atlanta, Miami, Toronto, Boston, Philadelphia, and the final will be in New York New Jersey.
Featured Image: AI-generated via Ideogram
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