GoKawiilArizona Attorney General Kris Mayes has filed criminal charges against prediction market platform Kalshi, for allegedly operating an illegal gambling business in the state without a license and for election wagering.
The 20-count complaint, filed in Maricopa County court on Tuesday, accuses the company of engaging in unlicensed gambling activities, claiming that the site “accepted bets from Arizona residents on a wide range of events,” including state elections, a practice that is illegal in Arizona. The complaint charged Kalshi with four counts of election wagering for accepting bets from Arizona residents on the 2028 presidential race, the 2026 Arizona gubernatorial race, the 2026 Arizona Republican gubernatorial primary, and the 2026 Arizona Secretary of State race.
This is the first time a state has pursued such charges against the company, according to the Arizona Mirror, and marks a significant escalation in the battle between states and the prediction market industry.
“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,” Attorney General Mayes said in a statement. “No company gets to decide for itself which laws to follow.”
It’s worth noting that the charges are technically misdemeanors. They follow a small surge of cease-and-desist letters, lawsuits, and other official actions from states over Kalshi’s activities, in which numerous officials have complained that the company is skirting state gambling laws.
Conversely, prediction sites like Kalshi have argued that they are not in violation of state law because they are subject to federal regulation via the Commodity Futures Trading Commission.
Kalshi may be getting attacked left, right, and center, but the Kalshi has also taken its own, often preemptive, legal action.
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