Arizona charges Kalshi with 20 misdemeanors for running unlicensed prediction markets, including election bets, calling it illegal gambling.

Arizona has filed 20 criminal misdemeanor charges against Kalshi, a CFTC-regulated prediction market platform, accusing it of operating an illegal gambling business by accepting bets on elections, sports, and other events without state authorization. The charges, including four related to election wagering, mark the first criminal prosecution of its kind against a prediction market operator. Arizona’s Attorney General Kris Mayes argues the platform violates state law, despite Kalshi’s claim that it operates as a federally regulated financial exchange under the Commodity Exchange Act. The case reflects a growing legal conflict between state gambling laws and federal oversight, with similar disputes ongoing in other states.