Arizona Files Charges Against Kalshi, Calling Prediction Market an 'Illegal Gambling Operation'
Arizona Attorney General Kris Mayes filed 20 criminal charges against prediction market platform Kalshi, alleging it operated an illegal gambling business and facilitated unlicensed election betting in violation of state law. Sixteen counts relate to unauthorized betting, and four counts address election wagering involving Arizona state races and the 2028 presidential election. Arizona law explicitly prohibits both unlicensed wagering operations and betting on elections. The charges followed Kalshi’s lawsuit against Arizona seeking relief from enforcement, a legal strategy the company has also pursued in Ohio, Iowa, and Utah. Mayes criticized Kalshi for suing states instead of complying with local laws, stating Arizona will enforce its regulations. Kalshi has faced other legal setbacks, including a denied injunction in Ohio, a class action lawsuit related to payouts, and potential restraining orders in Nevada. The company was valued at around $11 billion in December and reportedly seeks a $20 billion valuation.
