US EditionArizona hits Kalshi with criminal charges, escalating fight between states and prediction markets
Arizona's attorney general charged Kalshi with 20 misdemeanors for unlicensed sports and election betting, risking fines up to $20,000 per sports bet and $10,000 per election wager.
- On Tuesday, Arizona Attorney General Kris Mayes filed a 20-count misdemeanor complaint in Maricopa County alleging 16 counts of unlicensed wagering and four of election wagering against Kalshi.
- Arizona law prohibits election betting and unlicensed wagering, so Mayes cited these bans as the legal basis and argued Kalshi cannot evade state rules by calling itself a 'prediction market'.
- Prosecutors cited wagers ranging from $1 to $30, including a $1 Super Bowl prop on Elon Musk, based on small Arizona wagers placed by undercover Arizona agents.
- U.S. District Judge Michael Liburdi denied Kalshi's request Tuesday and ordered the company to justify why the federal case should proceed amid misdemeanor penalties including fines and possible asset forfeiture.
- The dispute could decide whether states or the CFTC regulate prediction markets, with sports making up roughly 90% of Kalshi’s volume and projected revenue of about $1 billion this year.
133 Articles
133 Articles
Arizona hits Kalshi with criminal charges, escalating fight between st
Arizona on Tuesday became the first state to file criminal charges against Kalshi, accusing the prediction market company of operating an illegal gambling business within its borders, a significant escalation in the fight to regulate the popular platform. The 20-count charging document accuses Kalshi of accepting bets on political outcomes, college sporting competitions and individual player performance in violation of Arizona’s gambling laws. T…
Associated Press News
Arizona hits Kalshi with criminal charges, escalating fight between states and prediction markets
Arizona has become the first state to file criminal charges against Kalshi, accusing the prediction market platform of operating an illegal gambling business within its borders.
Company seeks injunction to block state oversight of event-prediction wagering
Kalshi, a derivatives trading company facing legal challenges from several states accusing it of offering illegal gambling, is taking Iowa's attorney general to court in an effort to block any enforcement action. (Photo by David Talukdar/Getty Images)
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