TLDR Arkansas Attorney General Tim Griffin sued Kalshi and VGW on Wednesday over unlicensed gambling claims. Griffin says Kalshi’s self-exclusion tools and deposit limits show it operates as a gambling platform. The Kalshi suit came one day after more than $330 million was traded on its Senate control market. VGW’s Gold Coins and Sweeps Coins system is at the center of the second lawsuit. Both suits seek restitution, penalties, taxes and customer refunds.
Arkansas Attorney General Tim Griffin filed lawsuits on Wednesday against prediction market platform Kalshi and online gaming company VGW. He accuses both companies of offering illegal gambling services in Arkansas without a license. His office announced each case in a separate news release.
The Kalshi lawsuit arrived one day after the U.S. midterm elections. According to Kalshi’s website, more than $330 million was traded on a single question: which party would control the U.S. Senate. That figure covers only one market on the platform.
Griffin also claims both firms broke the Arkansas Deceptive Trade Practices Act. He says the companies misled consumers about whether their services are legal in the state.
Both lawsuits seek restitution, penalties and taxes from the companies. They also ask the courts for orders stopping what Griffin calls unlawful practices.
The suits further request orders requiring Kalshi and VGW to give refunds to customers. Each case was filed in a different county court in Arkansas.
Kalshi’s Safety Features Become Evidence
Kalshi describes itself as a prediction market, not a gambling business. Its users can trade on the outcomes of almost anything, including elections. The company’s app can be downloaded on mobile phones.
Griffin’s case leans on tools Kalshi offers its own customers. He pointed to self-exclusion options, deposit limits and other controls that gambling operators use to help users stay