The state of Arizona has filed criminal charges against prediction market Kalshi’s parent companies, accusing them of running an illegal gambling business without a license.
Attorney General Kris Mayes said Kalshi allowed bets on sports, elections, and global events, violating state law. Officials filed 20 counts of illegal wagering.
The NY-based firm has rejected the claims, calling them seriously flawed.
Commodity Futures Trading Commission chair Michael Selig said the legal dispute should not be treated as a criminal case.
Prediction platforms like Kalshi and Polymarket have grown rapidly, with reports valuing them at nearly $20 billion each.
Like Arizona, several states, including Massachusetts and Michigan, have challenged the legality of prediction market platforms.
Courts have already rejected Kalshi’s attempts to block bans in Ohio and Nevada, and appeals are ongoing.