Arizona becomes first state to file criminal charges against Kalshi

Arizona Attorney General Kris Mayes filed a 20-count criminal complaint against Kalshi, saying the prediction market is operating an unlicensed gambling business and taking bets on Arizona elections. 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." Kalshi spokeswoman Elisabeth Diana called the charges "seriously flawed" and an example of "gamesmanship." "These charges are meritless, and we look forward to fighting them in court," she said.

The company and other platforms, such as Polymarket, have been sued by several states in a broader fight over whether they fall under state gambling laws. Commodity Futures Trading Commission Chair Michael Selig has said the commission will seek to defend federal jurisdiction over the platforms.

The charges were filed several days after Kalshi sued Arizona preemptively.

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