Arkansas Sues Kalshi, Joining a Growing List of States Targeting Prediction Markets
Arkansas Attorney General Tim Griffin has sued KalshiEX LLC and Kalshi Inc., alleging the prediction market operates an unlicensed gambling platform in violation of state law. Arkansas seeks restitution, penalties, taxes and an injunction. Griffin says Kalshi lets residents as young as 18 wager on sports and entertainment events without the licenses and taxes required of gambling operators. Kalshi maintains its event contracts are federally regulated by the CFTC and outside state gambling authority. The suit adds to a growing legal fight: more than a dozen states have challenged prediction markets, while the CFTC has sued states to assert federal jurisdiction. Federal appeals courts are divided, and New Jersey has asked the Supreme Court to resolve the issue.
