Arizona has filed 20 criminal charges against prediction market platform Kalshi, alleging it operated an illegal gambling business and enabled unlicensed election betting.
The charges, brought by Attorney General Kris Mayes, include 16 counts related to betting and wagering and four counts tied to election wagering violations.
“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,”
Said Arizona Attorney General, Kris Mayes.
The case targets KalshiEx LLC and Kalshi Trading LLC, the entities behind the platform, and centres on bets tied to Arizona state races in 2026 and the 2028 US presidential election.
Arizona law prohibits both unlicensed wagering businesses and betting on elections, forming the basis of the state’s legal action against the company.
Kalshi had earlier filed a lawsuit against Arizona seeking relief from enforcement, a move authorities described as an attempt to avoid compliance with state laws.
The charges follow a series of similar legal disputes, with Kalshi also pursuing action against states including Iowa and Utah, while facing setbacks in Ohio and increased scrutiny in Nevada.
The escalating regulatory pressure comes as the company reportedly seeks to raise its valuation towards $20 billion, despite ongoing legal challenges.