Plaintiffs, Illinois residents who lost money wagering on Kalshi's "prediction market" platform, sued in the Northern District of Illinois under the Illinois Gambling Recovery Act and state consumer protection statutes.
Kalshi, a New York-headquartered company, argued that the case should move to New York where four similar class actions are already consolidated in In re Kalshi Sports Prediction Market Litigation, No. 25-cv-8585.
The court found that while the plaintiffs' choice of forum warranted some deference, the situs of the material events—Kalshi's business decisions and marketing—occurred in New York.
The judge determined that litigating the case in Illinois would duplicate judicial resources already being used in New York to resolve nearly identical questions of fact and law.
Specifically, both cases address whether Kalshi's event contracts constitute illegal gambling, whether the company misled consumers about peer-to-peer trading, and whether federal commodity law preempts state regulations.
Although the Illinois suit includes specific state consumer fraud claims not present in the New York litigation, the court held that the underlying facts and substance of the claims are substantially similar.
The motion to transfer is granted, and the case is transferred to the Southern District of New York.