One of two class actions lodged against Kalshi in New York may be delayed, after a joint request by the defendants and plaintiff to adjourn January's pretrial conference.
All parties have agreed that it would be best to push the January 7 date back as Kalshi prepares to file two motions that would take the case out of court.
According to a court document, the defendants will motion to force an out-of-court arbitration and to dismiss the complaint entirely.
If either of these requests were to be granted by the judge, then the class action would not proceed at all.
In the event that the judge rules a private arbitration as the most appropriate course of action, the class action element of Daniel Yee's initial court briefing would no longer be applicable, though he would be free to pursue an individual claim.
The briefings for both of these Kalshi motions are scheduled for March 16, 2026, or before. The document reads: "The parties respectfully request an adjournment of the Initial Pretrial Conference to a date after briefing of the motions is complete."
Daniel Yee, a San Francisco resident, led the complaint after losing $2,000 on Kalshi's prediction market platform.
He contests that Kalshi took this money, and the money of others, illegally, due to a misleading marketing campaign that claimed "betting is now legal in all 50 states."
The initial court briefing outlining Yee's argument states that the case should recover "hundreds of millions of dollars" for Kalshi users.
Another class action case was lodged in New York in late November 2025.
This second case alleges that Kalshi offered illegal sports betting while presenting as a federally regulated exchange.
Each of these arguments gets to the heart of the controversy inherent with US prediction markets.
In numerous courts across the USA, state gambling regulators are having the same debates as they seek to exercise state law over the operator, which claims federal protection from the Commodity Exchange Act of 1936.
Daniel Yee's initial case claimed that Kalshi "acted with malice, oppression and fraud"
