Arizona AG Files Charges against Kalshi over ‘Illegal Gambling‘

Arizona Attorney General Kris Mayes announced that her office has filed criminal charges, including operating an illegal gambling business without a license, against Kalshi, the platform behind prediction markets. Authorities allege that Kalshi allowed Arizona residents to bet on contracts related to sports and state/federal elections, which violates state law. Mayes stated that Kalshi is running an illegal gambling operation and taking prohibited bets on Arizona elections. The charges follow Kalshi preemptively suing several US states to avoid accountability under Arizona law. A Kalshi spokesperson countered that states are attempting to individually regulate a nationwide financial exchange, asserting that Kalshi is subject to federal jurisdiction, unlike traditional sportsbooks, and should not be overseen by inconsistent state laws. This action comes after Kalshi recently lost a preliminary injunction request in Ohio regarding sports betting lawsuits, though a federal judge in Tennessee previously blocked state enforcement against the platform.

(Source：Cointelegraph)