Arizona became the first state to file criminal charges against Kalshi on Tuesday, accusing the prediction market company of operating an illegal gambling business within its borders, a significant escalation in the fight to regulate the popular platform.
The 20-count charging document accuses Kalshi of accepting bets on political outcomes, college sporting competitions and individual player performance in violation of Arizona's gambling laws. The state prohibits operating an unlicensed wagering business and bans betting on elections.
