TLDR:
- Arizona AG Kris Mayes filed 20 criminal counts against Kalshi for running an unlicensed wagering business.
- Four counts specifically target election wagering, including bets on the 2028 presidential and 2026 Arizona races.
- Kalshi preemptively sued Arizona on March 12, continuing a pattern of federal lawsuits against Iowa and Utah.
- An Ohio federal judge recently denied Kalshi’s injunction bid, affirming state authority to regulate gambling markets.
Kalshi, the prediction markets platform, now faces 20 criminal counts filed by Arizona Attorney General Kris Mayes. The charges target KalshiEx LLC and Kalshi Trading LLC for allegedly running an unlicensed gambling operation.
Arizona residents reportedly placed bets on sports, individual player performance, and political elections through the platform.
The counts include four charges tied specifically to election wagering, which Arizona law prohibits entirely. This action adds to a growing wave of state-level enforcement against Kalshi across the United States.
Arizona Files Criminal Charges Against Kalshi for Operating Without a License
Attorney General Mayes filed the criminal information on Tuesday, March 17, 2026, in Phoenix. The charges cover a wide range of alleged violations under Arizona state law. Operating a wagering business without a license is one of the core allegations brought against the company.
Four of the 20 counts relate directly to election wagering, which Arizona law bans outright. The bets at issue covered the 2028 presidential race and the 2026 Arizona gubernatorial election. Two additional counts involve the 2026 Republican gubernatorial primary and the Arizona Secretary of State race.
Beyond political contests, Kalshi allegedly accepted wagers on professional and college sporting events. Proposition bets on individual player statistics were also listed among the charges. The platform reportedly accepted bets on whether the SAVE Act would become federal law.
Mayes challenged how Kalshi presents itself to regulators and users in her statement. “Kalshi may brand itself as a ‘prediction market,’ but what it’s actually doing is running an illegal gambling operation,” she said.
She added, “No company gets to decide for itself which laws to follow,” reinforcing the state’s firm stance on the matter.
Kalshi’s Preemptive Lawsuits Draw Sharp Criticism From State Officials
Kalshi moved ahead of the charges by suing Arizona in federal court on March 12. The company filed the lawsuit before criminal proceedings were formally initiated. This tactic mirrors similar suits Kalshi filed against Iowa and Utah within the same three-week period.
Mayes addressed this pattern directly, stating, “Kalshi is making a habit of suing states rather than following their laws.”
She noted the three lawsuits filed in under three weeks as evidence of the company’s broader legal strategy. “Rather than work within the legal frameworks that states like Arizona have established, Kalshi is running to federal court to try to avoid accountability,” she continued.
A federal court in Ohio recently rejected this approach during proceedings in that state. Judge Sarah Morrison denied Kalshi’s request for a preliminary injunction, ruling that Kalshi’s concerns were “dwarfed by Ohio’s interest in exercising its police power.” She stressed the state’s authority to enforce its laws and regulate sports gambling for public welfare.
The CFTC has also entered the broader debate by seeking exclusive jurisdiction over event contracts. The federal regulator is advancing related rulemaking as state-federal tensions over prediction markets intensify.
Mayes closed with a direct warning: “Arizona will not be bullied into letting any company place itself above state law.”
