Arizona has filed criminal charges against Kalshi, accusing
the New York-based prediction markets platform of running an unlicensed
gambling business and accepting bets on elections.
Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)
Attorney General Kris Mayes
said the company “may brand itself as a prediction market, but it is taking
illegal bets on Arizona elections,” which violates state law.
The 20-count filing in Maricopa County Superior Court claims
Kalshi allowed Arizona residents to wager on professional and college sports,
individual player performances, and political outcomes.
Gambling or Trading Products
Prosecutors cited bets on the 2028 U.S. presidential race
and upcoming 2026 state elections, including the governor and secretary of
state contests.
Arizona said it filed criminal charges against Kalshi for operating an illegal gambling business in the state. https://t.co/EMoFtUsRZ5
— Bloomberg (@business) March 17, 2026
Kalshi said in a statement that Arizona’s accusations rest
on “paper-thin arguments,” arguing that its platform operates as a financial
exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term regulated by the U.S. Commodity Futures Trading Commission. The
company added that different states should not oversee a “nationwide financial
exchange.”
You may also like: Polymarket Grabs Nearly 55% of Prediction Markets as Iran Bets Test CFTC Crackdown
Arizona’s action comes amid a broader regional and national
fight over how to regulate Kalshi’s event contracts, with the company now
entangled in dozens of cases that pit its claim of exclusive federal oversight
by the U.S. Commodity Futures Trading Commission against the authority of
states to enforce their gambling laws.
In recent weeks, Kalshi has preemptively sued regulators in
states including Arizona, Iowa and Utah after pushback on its sports and
political markets, while several states and tribal authorities have launched
their own actions to block in-state access to the platform.
Attorney General Mayes said Kalshi has a pattern of suing
states rather than complying with their wagering laws. The company recently
filed cases against Iowa, Utah, and Arizona to block state enforcement.
Courts have issued mixed rulings so far: a judge in
Tennessee allowed Kalshi to keep operating under a temporary stay, while
decisions in states such as Maryland, Massachusetts and Ohio have backed state
powers to treat the firm’s contracts as gambling products subject to local
licensing rules.
States Push Back on CFTC
A federal judge in Ohio recently rejected Kalshi’s bid for
an injunction, ruling that the state’s authority to regulate gambling
outweighed the firm’s operational claims. The Arizona case marks the first
criminal prosecution against Kalshi by a state.
The latest development comes as a defiance to a growing
campaign by federal regulators to claim sole authority over prediction markets,
deepening a clear split between Washington and the states. CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
Read this Term Chair Michael Selig has recently pushed a moreassertive line, directing the agency to intervene in court battles.
He insists that federal derivatives rules, not state
gambling codes, should govern event contracts. He has cast the wave of state
enforcement against platforms such as Kalshi, Coinbase, Crypto.com and
Polymarket as part of a broader state-led offensive.
Arizona has filed criminal charges against Kalshi, accusing
the New York-based prediction markets platform of running an unlicensed
gambling business and accepting bets on elections.
Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)
Attorney General Kris Mayes
said the company “may brand itself as a prediction market, but it is taking
illegal bets on Arizona elections,” which violates state law.
The 20-count filing in Maricopa County Superior Court claims
Kalshi allowed Arizona residents to wager on professional and college sports,
individual player performances, and political outcomes.
Gambling or Trading Products
Prosecutors cited bets on the 2028 U.S. presidential race
and upcoming 2026 state elections, including the governor and secretary of
state contests.
Arizona said it filed criminal charges against Kalshi for operating an illegal gambling business in the state. https://t.co/EMoFtUsRZ5
— Bloomberg (@business) March 17, 2026
Kalshi said in a statement that Arizona’s accusations rest
on “paper-thin arguments,” arguing that its platform operates as a financial
exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term regulated by the U.S. Commodity Futures Trading Commission. The
company added that different states should not oversee a “nationwide financial
exchange.”
You may also like: Polymarket Grabs Nearly 55% of Prediction Markets as Iran Bets Test CFTC Crackdown
Arizona’s action comes amid a broader regional and national
fight over how to regulate Kalshi’s event contracts, with the company now
entangled in dozens of cases that pit its claim of exclusive federal oversight
by the U.S. Commodity Futures Trading Commission against the authority of
states to enforce their gambling laws.
In recent weeks, Kalshi has preemptively sued regulators in
states including Arizona, Iowa and Utah after pushback on its sports and
political markets, while several states and tribal authorities have launched
their own actions to block in-state access to the platform.
Attorney General Mayes said Kalshi has a pattern of suing
states rather than complying with their wagering laws. The company recently
filed cases against Iowa, Utah, and Arizona to block state enforcement.
Courts have issued mixed rulings so far: a judge in
Tennessee allowed Kalshi to keep operating under a temporary stay, while
decisions in states such as Maryland, Massachusetts and Ohio have backed state
powers to treat the firm’s contracts as gambling products subject to local
licensing rules.
States Push Back on CFTC
A federal judge in Ohio recently rejected Kalshi’s bid for
an injunction, ruling that the state’s authority to regulate gambling
outweighed the firm’s operational claims. The Arizona case marks the first
criminal prosecution against Kalshi by a state.
The latest development comes as a defiance to a growing
campaign by federal regulators to claim sole authority over prediction markets,
deepening a clear split between Washington and the states. CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
Read this Term Chair Michael Selig has recently pushed a moreassertive line, directing the agency to intervene in court battles.
He insists that federal derivatives rules, not state
gambling codes, should govern event contracts. He has cast the wave of state
enforcement against platforms such as Kalshi, Coinbase, Crypto.com and
Polymarket as part of a broader state-led offensive.
