Arizona AG files charges against Kalshi over ‘illegal gambling‘

A Kalshi spokesperson said that the criminal case was based on ”paper-thin arguments” and claimed the company was exclusively under federal jurisdiction.

Arizona Attorney General Kris Mayes announced that her office filed gambling and related criminal charges against the companies behind prediction markets platform Kalshi.

In a Tuesday notice, Mayes said that the charges alleged that Kalshi operated an “illegal gambling business in Arizona without a license” and offered election wagering, in violation of state laws. Arizona authorities alleged that Kalshi’s prediction markets platform allowed state residents to bet on event contracts related to sports and state and federal elections. 

“Kalshi may brand itself as a ‘prediction market,’ but what it's actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law,” said Mayes. “No company gets to decide for itself which laws to follow.”

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