Kalshi, one of the nation’s largest “prediction markets,” has been hit with a nationwide class action lawsuit in the Southern District of New York, alleging that the platform has predominantly become an illegal sports betting site that secretly tricks consumers into rigged bets against the house, when they think they’re betting against other users on the platform.

The suit, filed this week, was reported on X by sports betting and gaming attorney Daniel Wallach.

“Consumers on Kalshi do not only bet against each other — they also bet against the House. Kalshi operates institutional market makers, which also gamble against the consumer,” stated the lawsuit.

“Kalshi also partners with hedge funds, such as Susquehanna International Group, to provide a sophisticated ‘market making’ service for Kalshi by being on the other side of consumers’ bets.”

“As a result, individual consumers hardly stand a chance, all the while thinking they are just betting against other consumers,” the suit said.