Private civil suit
Kentucky Gambling Recovery LLC v. Kalshi Inc., et al.
Franklin Circuit Court, Kentucky (remanded from the U.S. District Court for the Eastern District of Kentucky), 25-CI-00512 (Franklin Cir. Ct.); 3:25-cv-00053 and 3:25-cv-00054 (E.D. Ky., consolidated, lead 3:25-cv-00054)
Remanded
Removed to federal court on Oct. 20, 2025 and remanded to Franklin Circuit Court by Judge Gregory F. Van Tatenhove on March 3, 2026. Later state-court activity was not found.
The question
Whether a third party can use Kentucky's gambling-loss recovery statute to recover money Kentuckians lost on sports event contracts offered through CFTC-registered exchanges and brokers, and whether such claims belong in state court.
Kentucky Gambling Recovery LLC sued Kalshi entities, the market maker Susquehanna, and the brokers Robinhood and Webull in Franklin Circuit Court in 2025, invoking Kentucky's gambling-loss recovery law over sports event contracts. Robinhood removed the two related cases to federal court on Oct. 20, 2025, where they were consolidated. On March 3, 2026 Judge Gregory Van Tatenhove granted the plaintiff's motion and sent the case back to state court. The plaintiff's claims are allegations.
Docket timeline
Judge Gregory F. Van Tatenhove granted remand to Franklin Circuit Court (order entered March 4, 2026).
Source: dockets.justia.com
The plaintiff moved to remand to state court.
Source: dockets.justia.com
The court consolidated No. 3:25-cv-00053 into lead case No. 3:25-cv-00054.
Source: dockets.justia.com
Robinhood removed the case from Franklin Circuit Court (No. 25-CI-00512) to the Eastern District of Kentucky.
Source: dockets.justia.com