TLDR Arizona became the first state to file criminal charges against prediction market platform Kalshi, accusing it of running an illegal gambling operation The 20-count criminal case includes charges for election wagering on the 2028 presidential race and 2026 Arizona races A federal judge denied Kalshi’s emergency restraining order and questioned whether his court should even hear Kalshi’s federal lawsuit Kalshi called the charges “seriously flawed” and “gamesmanship,” saying they were timed to dodge federal court review CFTC Chairman Mike Selig called the criminal charges “entirely inappropriate” and said the agency is evaluating its options
Arizona has become the first state in the country to bring criminal charges against a prediction market platform. The state filed a 20-count criminal case against Kalshi on Tuesday, accusing the company of operating an illegal gambling business.
Attorney General Kris Mayes said Kalshi was taking bets from Arizona residents on elections and sporting events in violation of state law. She said no company gets to decide which laws to follow.
The charges include four counts of election wagering. Those cover bets on the 2028 presidential race, the 2026 Arizona gubernatorial race, the 2026 Arizona Republican gubernatorial primary, and the 2026 Arizona Secretary of State race.
Other charges relate to bets on professional and college sports, as well as proposition bets on individual player performance. One charge involves a bet on whether the SAVE Act would become law.
Arizona can seek fines of $10,000 to $20,000 per charge. The state can also pursue asset forfeiture and court orders to shut down Kalshi’s operations.
Criminal charges also give prosecutors access to broader investigative tools. These include the power to subpoena company records and compel testimony from executives.
Kalshi’s Federal Lawsuit Hits a Wall
The criminal case came just days after Kalshi filed its