Type “Kalshi Oregon lawsuit” into a search bar today and the case that comes up isn’t sitting in Oregon anymore. An Oregon resident filed it in Portland’s federal courthouse in February 2026. By June, a judge shipped the whole thing to New York. The claim traveled with it — that Kalshi’s sports contracts are illegal gambling under Oregon law — but the docket, and the judge who’ll rule on it, is now three time zones away.

A One-Operator State Betting Market

Oregon’s sports betting history is stranger than most states’. It was one of four states — alongside Nevada, Delaware, and Montana — grandfathered under the 1992 federal sports-betting ban because it already ran a sports lottery game called Sports Action back in the 1990s. That old authority, sitting in the Oregon Constitution’s lottery clause and ORS Chapter 461, meant the Oregon Lottery could relaunch sports betting in 2019 without a new statute. It ran its own Scoreboard app first, then handed the whole thing to DraftKings in August 2021. Scoreboard shut down in January 2022. Oregon has had exactly one licensed online sportsbook ever since — no multi-operator market like New Jersey’s or Michigan’s, just a Lottery contract.

Kalshi was never part of that contract. It doesn’t hold Lottery authority and isn’t seeking any. It operates under its federal CFTC designation instead — the same argument it makes in every state on this site, and the reason Oregon’s challenge came from a private plaintiff rather than the Lottery Commission itself.

The Case That Left the State

Ian Reynolds filed Reynolds v. Kalshi Inc. et al in the US District Court for the District of Oregon on February 20, 2026, naming Kalshi along with market-maker firms Susquehanna International Group and Susquehanna Government Products. The complaint argues Kalshi runs an illegal online gambling enterprise under Oregon’s ban on non-state-run gambling, and invokes ORS 30.740 — Oregon’s loss-recovery statute — to seek double damages on behalf of every Oregon resident who lost money trading sports contracts on the platform.

The Oregon case, in order:

  • February 20, 2026 — Ian Reynolds files a proposed class action in the District of Oregon (Case 3:26-cv-00336)
  • Claims: illegal gambling enterprise under Oregon law; double damages under ORS 30.740
  • Defendants: Kalshi Inc., Susquehanna International Group, Susquehanna Government Products
  • June 22, 2026 — transferred to the Southern District of New York
  • Now: Reynolds v. Kalshi Inc., 1:26-cv-05238, before Judge Jennifer L. Rochon, alongside SDNY’s other Kalshi class actions

Is Kalshi Legal in Oregon Right Now?

No Oregon court has ruled on the merits, and no Oregon agency — not the Lottery Commission, not the state DOJ — has sued or moved to block Kalshi the way Michigan or Ohio’s regulators have. What exists is an unresolved private lawsuit that started in Oregon and now sits in a New York courtroom next to similar claims from other states’ residents. That’s a real legal cloud, not a settled answer either direction.

Is Kalshi Legit in Oregon?

As a company, yes — CFTC designation since 2020, KYC accounts, a real record of settling contracts in dollars. The Reynolds complaint isn’t a fraud claim; it’s a legality claim, arguing the product itself shouldn’t be offered to Oregon residents under state gambling statutes designed for a Lottery monopoly, not a federal derivatives exchange.

What This Means If You’re in Oregon

You can open a Kalshi account and trade event contracts from Oregon today; nothing here has stopped that. A transferred lawsuit alleging the sports contracts are illegal gambling is still working through New York’s federal court, and Oregon itself has no licensed path for Kalshi to fit into even if it wanted one — the state’s only sportsbook is a Lottery contract with DraftKings. This isn’t a way to make money, and a contract can expire worthless no matter what happens in SDNY. 21+ only, and if it stops feeling like a choice, 1-800-GAMBLER is free and confidential.