Arizona attorney general files criminal charges against Kalshi over event contracts
Arizona prosecutors filed criminal charges against Kalshi, alleging that certain event contracts offered to state residents constitute illegal gambling under Arizona law. The filing challenges Kalshi’s position that its federal designation as a regulated Designated Contract Market allows it to offer contracts nationwide. The report said Kalshi had not closed its Arizona operations as of Tuesday afternoon.
The case could affect Kalshi’s ability to offer event contracts in Arizona and the state treatment of prediction markets.