Arizona Files Criminal Charges Against Kalshi for Illegal Gambling
Arizona AG charges Kalshi with illegal gambling and election wagers, escalating a battle over prediction market regulation.
Arizona: The state’s Attorney General has charged Kalshi with running an illegal gambling business. The company’s prediction market platform let people bet on elections and other events without proper state licenses.
Kalshi faces 20 criminal charges in Maricopa County court. Officials say the company took bets from Arizona residents on the 2028 presidential race and upcoming state elections. These types of bets are against Arizona law.
Government lawyers call Kalshi’s services gambling, not prediction markets. They say no company can choose which laws to follow. The charges are misdemeanors but show states are getting tougher on such companies.
Kalshi disagrees and has sued Arizona, Iowa, and Utah. The company claims federal law gives it special protection through the Commodity Futures Trading Commission. It also says states are trying to stop federal officials from doing their jobs.
Kalshi’s communications head says the new charges came just days after their lawsuit. She calls them “seriously flawed” and says they’re meant to stop federal courts from hearing the case. The fight between state and federal control of prediction markets may get worse.