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Judge rejects bid to stop Arizona’s prosecution of Kalshi on wagering charges
The order pauses Arizona’s first criminal case against a prediction market operator while the federal preemption fight continues, after prosecutors filed 20 misdemeanor counts.
- On Wednesday, U.S. District Judge Michael Liburdi denied Kalshi's request to block Arizona from pursuing 20 misdemeanor wagering charges, citing the Anti-Injunction Act's limits on federal intervention in state proceedings.
- Arizona Attorney General Kris Mayes filed the criminal case on March 17, alleging Kalshi operates an illegal wagering business and must comply with state gambling laws rather than exclusively federal regulation.
- Prosecutors charged the company with 20 misdemeanor counts, including four election-related bets placed by an investigator between December 2025 and February 2026, with 16 remaining counts involving sports wagers like Arizona State University basketball games.
- Kalshi faces its initial arraignment in Maricopa County Superior Court on Monday, while Liburdi declined to rule on whether the company's "swaps" are federally preempted, calling such a decision premature.
- The Commodity Futures Trading Commission intervened, arguing it holds exclusive jurisdiction over prediction markets; this conflict between state authority and federal oversight remains unresolved, with other federal courts issuing mixed rulings on similar cases.
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The Toronto Star+24 Reposted by 24 other sources
Judge bars Arizona from regulating prediction market operators and pauses prosecution of Kalshi
PHOENIX (AP) — A federal judge on Friday temporarily barred Arizona from enforcing its gambling laws against predictive market operators and put the brakes on a criminal wagering case that the state has filed against Kalshi.
·Toronto, Canada
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Arizona's criminal case against Kalshi was halted by a federal judge after the Trump administration stepped in
CFTC chairman Michael SeligCFTC via Getty ImagesKalshi says it's a financial market, but Arizona prosecutors say it's arranging illegal sports bets.A Trump-appointed regulator says Kalshi's sports bets are legally swaps and states need to back off.On Friday, a judge sided with the federal government, putting Arizona's criminal case on pause.A judge on Friday ordered Arizona's attorney general to temporarily pause its criminal case against Kalshi…
·United States
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Total News Sources89
Leaning Left28Leaning Right6Center34Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 41%
C 50%
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