Private civil suit
South Carolina Gambling Recovery LLC v. Kalshi Inc., et al.
U.S. District Court for the District of South Carolina (removed from the Oconee County Court of Common Pleas), 8:25-cv-12859 (consolidated with 8:25-cv-12867-BHH); 2025CP3700563 (Oconee County)
Pending
Removed to federal court on Oct. 7, 2025; the plaintiff's remand motion was fully briefed with supplemental authority through April 4, 2026 and no ruling appeared on the docket as of that date. A litigation tracker reports that the judge granted a six-month stay on June 26, 2026 (not docket-verified).
The question
Whether a third party can use South Carolina's gambling-loss recovery statute to recover money lost on sports event contracts offered through CFTC-registered exchanges and brokers, and whether the case belongs in state or federal court.
South Carolina Gambling Recovery LLC sued Kalshi entities, Susquehanna, Robinhood and Webull in Oconee County in 2025 under South Carolina's gambling-loss recovery law over sports event contracts. Robinhood removed the case to federal court on Oct. 7, 2025, where it was consolidated with a companion case before Judge Bruce Howe Hendricks, and the plaintiff moved to send it back to state court. The plaintiff's claims are allegations. A litigation tracker reports the case was stayed for six months in June 2026.
Docket timeline
A litigation tracker reports the judge granted a six-month stay in South Carolina's Statute of Anne litigation (not docket-verified).
Source: mickbransfield.com
The plaintiff moved to remand to state court.
Source: dockets.justia.com
The court consolidated Nos. 8:25-cv-12859 and 8:25-cv-12867.
Source: dockets.justia.com
The Robinhood defendants removed the case from the Oconee County Court of Common Pleas (No. 2025CP3700563).
Source: dockets.justia.com