Arizona Attorney General Kris Mayes has filed criminal charges against prediction markets provider Kalshi for operating an illegal gambling business in the state without a license.
The 20-count criminal information has been filed against KalshiEx and Kalshi Trading, the companies behind the prediction markets platform, and allege that Kalshi accepted bets from Arizona residents on a wide range of events in violation of Arizona law.
These events included professional and college sporting contests, proposition bets on individual player performance, and whether the SAVE Act would become law.
Among the charges are four counts of election wagering, including bets on the 2028 presidential race, the 2026 Arizona gubernatorial race, the 2026 Arizona Republican gubernatorial primary, and the 2026 Arizona Secretary of State race.
Arizona law prohibits operating an unlicensed wagering business, and separately bans betting on elections outright.
“Kalshi may brand itself as a ‘prediction market,’ but what it’s actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law,” said Attorney General Mayes. “No company gets to decide for itself which laws to follow.”
The lawsuit comes less than a week after Kalshi sued the State of Arizona preemptively in an attempt to avoid accountability under Arizona law.
“Arizona will not be bullied into letting any company place itself above state law,” added Attorney General Mayes.