Kalshi faces criminal charges in Arizona over sports and election contracts

Arizona Attorney General Kris Mayes filed 20 criminal counts against KalshiEx LLC and Kalshi Trading LLC, alleging the prediction market platform operated an unlicensed wagering business and illegally accepted bets from Arizona residents on sports and elections, including the 2028 presidential and 2026 gubernatorial races. Mayes stated that Arizona law prohibits both unlicensed wagering and betting on elections outright. This action escalates a multi-state legal conflict, as Kalshi asserts it is subject to federal jurisdiction under the CFTC, which recently signaled a supportive stance toward prediction markets as regulated derivatives. Kalshi criticized the charges as based on "paper thin arguments," arguing that states are attempting to individually regulate a national financial exchange. The case is notable because it specifically involves election-related bets, unlike many previous rulings concerning sports contracts, and follows Kalshi's preemptive lawsuit against Arizona filed just days earlier.

(Source：CoinDesk)