Federal judge pauses Arizona case against Kalshi and blocks state enforcement
A federal judge temporarily barred Arizona from enforcing its gambling laws against prediction-market operators and paused the state’s criminal case against Kalshi. The order cancelled a scheduled arraignment; prosecutors have brought 20 misdemeanor counts, which Kalshi contests. Arizona’s attorney general’s office said it disagreed with the ruling and was considering its next steps.
The order pauses Arizona’s prosecution while the court considers federal authority over event contracts.