Kalshi Faces Class Action Over Alleged User Tracking

Kalshi is facing a proposed privacy class action in federal court in Manhattan. The lawsuit comes only days after a judge refused to shield the company from New York gambling regulators over its sports‑event contracts.

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Plaintiffs claim Kalshi secretly shared trading activity and personal information with third‑party advertisers, embedding trackers from companies such as Google, TikTok, and LinkedIn on its website and app.

According to the complaint, this allowed outsiders to monitor which event contracts users viewed, researched, or traded. The case adds fresh pressure on Kalshi, which already faces regulatory battles over whether its contracts fall under gambling laws.

Allegations of secret data sharing

The complaint, brought by Sterlington and Lite DePalma Greenberg & Afanador, accuses Kalshi Inc. and Kalshi of transmitting user activity without consent. 

Plaintiffs argue that Kalshi’s own rulebook requires participants to “clearly consent” before their personal information is used for marketing, yet the company allegedly ignored that standard. 

The suit claims Kalshi collected more than basic contact details, linking real identities to financial information and recording what users searched, viewed, followed, bought, sold, or attempted to trade. Because Kalshi’s contracts are tied to real‑world events, plaintiffs say this data can expose a person’s political views, financial outlook, social interests, and tolerance for risk. 

Plaintiffs pushing to represent nationwide class of Kalshi users 

The named plaintiffs are Adrian Vazquez and Alexander Foley of Florida, and Nicholas Ross of Pennsylvania. They seek to represent a nationwide class of Kalshi users, along with state‑specific subclasses. 

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The complaint asserts violations of the Florida Security of Communications Act and the Pennsylvania Wiretapping and Electronic Surveillance Control Act. In addition, it raises claims of unjust enrichment and constructive bailment. 

Plaintiffs are asking for statutory, actual, and punitive damages, restitution, injunctive and declaratory relief, and attorneys’ fees. 

Kalshi’s legal battles continue

Although the privacy case is separate from Kalshi’s gambling dispute, it intensifies the company’s legal challenges. 

Just days earlier, U.S. District Judge Analisa Torres ruled that Kalshi was unlikely to prove federal commodities law prevents New York from applying its gambling rules to sports‑event contracts. 

That decision left Kalshi exposed to state regulation, and now the privacy suit adds another layer of scrutiny.

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Source: Law.com