Kalshi criminally charged in Arizona for operating illegal gambling business
Arizona's Attorney General has filed criminal charges against Kalshi, alleging it operates an illegal gambling business and allows bets on elections.Summary
Arizona Attorney General Kris Mayes has filed criminal charges against Kalshi, a prediction market platform, accusing it of operating an illegal gambling business and unlawfully allowing bets on elections within the state. This marks the first criminal case brought against Kalshi by a state, escalating a dispute over state gaming regulators' authority over prediction market operators. Kalshi argues it is not a traditional gambling operation and should be under the jurisdiction of the Commodity Futures Trading Commission (CFTC), a position previously supported by the CFTC under President Trump. The charges include 20 counts of violating Arizona law by accepting bets on professional and college sports, as well as future elections, including the 2028 presidential race. Kalshi preemptively sued Arizona in federal court to block the state's action, but a judge denied their request for a temporary restraining order. While no other state has filed criminal charges, Massachusetts, Nevada, and Michigan have filed civil lawsuits to prevent Kalshi from offering its services within their borders.
(Source：Reuters)