Arizona AG charges Kalshi over alleged illegal gambling

Arizona Attorney General Kris Mayes announced criminal charges against the companies behind prediction markets platform Kalshi, alleging the business operated an illegal gambling operation in Arizona without a license and offered election wagering in violation of state law.

Authorities say the platform allowed state residents to bet on event contracts related to sports and state and federal elections. “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,” Mayes said.

The charges follow Kalshi’s filing of a lawsuit against several states, which the AG’s office said was a preemptive attempt to avoid accountability under Arizona law. State authorities have pursued similar actions against operators of other prediction markets, including Polymarket and Kalshi.

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