Arizona Attorney General Kris Mayes has charged prediction market Kalshi with 20 counts of operating an unlicensed gambling business and offering election wagers in Arizona, violating state laws. The AG argues that Kalshi's activities constitute illegal gambling and betting on elections. This action contrasts with recent federal support for prediction markets from the CFTC under Chairman Mike Selig.
Kalshi argues that it operates under federal jurisdiction and should not face inconsistent state laws. Different courts have issued conflicting rulings on whether prediction markets are subject to state regulations. Notably, most previous legal challenges focused on sports gambling rather than election bets.
Mayes contends that Kalshi brands itself as a 'prediction market' but operates an illegal gambling operation. She criticizes the company's strategy of suing states instead of complying with local laws. The charges follow Kalshi's recent lawsuits against Iowa and Utah, highlighting a growing legal conflict.