Arizona judge blocks gambling prosecution of Kalshi prediction markets.

A federal judge has temporarily blocked Arizona from enforcing gambling laws against prediction market operator Kalshi, pausing state prosecution over 20 misdemeanor counts for betting on politics and sports. The ruling, issued by U.S. District Judge Michael Liburdi, follows a lawsuit by the Commodity Futures Trading Commission (CFTC), which argued federal law preempts state regulation. Kalshi, which claims to operate as a financial marketplace, welcomed the decision as a defense against state overreach.