Arizona’s attorney general has filed misdemeanor criminal charges against Kalshi, accusing the predictions platform of running an illegal gambling and election wagering operation in the state.
These are the first criminal charges to have been filed against Kalshi, though the company is embroiled in multiple lawsuits and investigations and has received dozens of cease-and-desist letters across the nation.
Prediction platforms like Kalshi have drawn comparisons to online sports gambling as they allow users to wager on the outcomes of events in pop culture, politics, sports and more.
Multiple states have argued that legalizing and regulating sports betting is under the jurisdiction of local regulators and outside the authority of the Commodity Futures Trading Commission, which regulates event contracts and the prediction markets.
States including Michigan and Massachusetts have filed civil lawsuits aimed at stopping operations or compelling Kalshi to meet gambling license requirements.
