Arizona files first criminal charges against Kalshi over illegal gambling and election betting
Mar 17th 2026
Arizona Attorney General Kris Mayes filed a 20-count misdemeanor complaint accusing prediction market Kalshi of operating an unlicensed gambling business and accepting bets on state elections, while Kalshi says federal CFTC jurisdiction applies and has sued the state.
- Arizona filed a 20-count misdemeanor complaint in Maricopa County accusing Kalshi of running an unlicensed gambling operation and accepting bets from Arizona residents.
- Four counts allege election wagering for bets on the 2028 presidential race and three 2026 Arizona races, including the gubernatorial and Secretary of State contests.
- Kalshi sued Arizona’s Department of Gaming in federal court and has brought similar lawsuits against Iowa and Utah, arguing these markets fall under federal CFTC jurisdiction.
- Attorney General Kris Mayes says Kalshi is avoiding state law, while Kalshi calls the charges meritless and a tactic to evade federal review.
- The dispute creates a potential regulatory showdown after CFTC Chair Mike Selig publicly asserted the agency’s exclusive authority over prediction markets.
Articles
- Arizona charges Kalshi, alleging illegal gambling with election bets www.theguardian.com
- Arizona files criminal charges against Kalshi, accusing prediction market of illegal gambling www.nbcnews.com
- Arizona indicts prediction market Kalshi for running illegal gambling operation arstechnica.com
- Kalshi’s legal troubles pile up, as Arizona files first ever criminal charges over ‘illegal gambling business’ techcrunch.com
- Arizona Becomes First State to Criminally Charge Kalshi: The “prediction market” platform is finally facing a serious legal challenge. newrepublic.com
- Arizona charges Kalshi with criminal misdemeanors, alleging it's an illegal gambling operation www.cnbc.com
- Oh, you think the government will regulate Kalshi and Polymarket? Wanna bet? www.theverge.com