Arizona Attorney General files charges against Kalshi for alleged illegal gambling
The company allegedly accepted bets on a range of events in violation of state law.
US.- Arizona Attorney General Kris Mayes has filed criminal charges against KalshiEx and Kalshi Trading, the companies behind the Kalshi prediction markets platform. They’re accused of operating gambling in the state without a licence.
According to Mayes’ office, Kalshi accepted bets on a wide range of events in violation of state law. That included professional and college sporting contests, proposition bets on individual player performance, and bets on whether the SAVE Act would become law. The charges include four counts of election wagering, including on the 2028 presidential election, 2026 Arizona gubernatorial race, 2026 Arizona Republican gubernatorial primary and the 2026 Arizona Secretary of State election.
Mayes argues that Arizona law prohibits operating an unlicensed wagering business, and bans betting on elections outright.
Mayes said: “Kalshi may brand itself as a ‘prediction market,’ but what it’s actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law. No company gets to decide for itself which laws to follow. Arizona will not be bullied into letting any company place itself above state law.”
On March 12, Kalshi sued the State of Arizona preemptively in an attempt to avoid accountability under law.
Recently, Michigan Attorney General Dana Nessel filed a lawsuit against Kalshi, alleging that the prediction market company has violated the state’s Lawful Sports Betting Act (LSBA). The lawsuit seeks an order of abatement and injunctive relief.
