Kalshi’s legal troubles pile up, as Arizona files first ever criminal charges over ‘illegal gambling business’

Arizona Attorney General Kris Mayes has filed 20 criminal charges against prediction market platform Kalshi for allegedly operating an illegal gambling business without a license and accepting election bets from Arizona residents. This marks the first time a state has pursued criminal charges against the company, escalating tensions between states and the prediction market industry. Kalshi has countersued Arizona and other states, arguing it falls under federal CFTC regulation rather than state gambling laws.