Arizona Attorney General (AG) Kris Mayes is bringing 20 criminal charges against prediction market website Kalshi, accusing it of operating an illegal gambling operation in the Grand Canyon State.
AG Mayes cites the fact that Kalshi has hosted wagers on Arizona elections, including the 2028 Presidential election and the 2026 midterms for Governor, the Republican primary, and the Secretary of State race.
Other wagers allowed on Kalshi include bets on whether the SAVE America Act will be signed into law and unauthorized sports-focused betting.
Not only are election wagers illegal under Arizona law, but Kalshi is not licensed to operate in the state, which is why it preemptively sued Arizona first.
"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," AG Mayes said in a press release. "No company gets to decide for itself which laws to follow. Arizona will not be bullied into letting any company place itself above state law."
The AG's lawsuit concurs with Representative Yassamin Ansari's (D-AZ) sponsorship of the Banning Event Trading on Sensitive Operations and Federal Functions (BETS OFF) Act, which prevents anyone who feasibly controls, and likely knows, the outcome of events such as government operations, military action, and even terror attacks, from placing wagers on websites like Kalshi and Polymarket.
The bill strengthens existing laws against illegal gambling, shutting down payment systems for illegal online platforms and imposing criminal penalties on U.S. citizens who promote, manage, own, or supervise these businesses.
"Prediction markets sell themselves as a place where everyone has an equal shot at winning big," said Rep. Ansari in a press release. "The reality is they're rigged against ordinary people and ripe for abuse – especially when betting on government actions."
