(Just the News)—A federally-regulated prediction markets platform called criminal charges filed against the company in Arizona “seriously flawed.”
Arizona Attorney General Kris Mayes filed criminal charges against the companies behind the Kalshi prediction markets platform, alleging Kalshi operated an illegal gambling business in Arizona without a license and engaged in election wagering.
“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, both of which violate Arizona law,” Mayes said. “No company gets to decide for itself which laws to follow.”
New York-based Kalshi said the criminal charges in Arizona were intended to bypass the company’s federal lawsuit against the state.
“Four days after Kalshi filed suit in federal court, these charges were filed to circumvent federal court and short-circuit the normal judicial process,” the company told The Center Square. “They attempt to prevent federal courts from evaluating the case based on the merits – whether Kalshi is subject to exclusive federal jurisdiction.”
The 20-count criminal information alleges that Kalshi accepted bets from Arizona residents in violation of state law. The events included professional and college sporting contests, proposition bets on player performance, and wagers on whether the SAVE Act would become law.
Among the charges are four counts of election wagering: 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.
Arizona law prohibits operating an unlicensed wagering business,4 and separately bans betting on elections outright.
Last week, Kalshi sued the state over a ban on its business.
“Kalshi is making a habit of suing states rather than following their laws. In the last three weeks alone, the company has filed lawsuits against Iowa and Utah, and now Arizona,” Mayes said. “Rather than work within the legal frameworks that states like Arizona have established, Kalshi is running to federal court to try to avoid accountability.”
Federal courts recently rejected Kalshi’s attempts to prevent bans on its business in Ohio and Nevada.
Kalshi has appealed the decisions.
“These charges are meritless, and we look forward to fighting them in court,” the company said.
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