Arizona files first-ever criminal charges against Kalshi, accusing it of running an illegal gambling business

The Arizona attorney general filed a 20-count complaint against Kalshi in Maricopa County court, charging the company with unlicensed gambling activities and four counts of election wagering for accepting bets from Arizona residents on the 2028 presidential race and three 2026 state races. The charges, technically misdemeanors, come just four days after Kalshi filed its own federal lawsuit against Arizona and follow similar suits the company filed against Iowa and Utah, in which it argues it falls under the exclusive federal jurisdiction of the Commodity Futures Trading Commission. The standoff is shaping up as a broader regulatory battle between states and the prediction market industry, with CFTC chair Michael Selig recently publishing a Wall Street Journal op-ed accusing state governments of undermining his agency's exclusive authority to regulate such platforms.