First Criminal Charges Filed Against Kalshi in the United States

^{Pictured: Kris Mayes, Arizona Attorney General}

Arizona has filed criminal charges against prediction market platform Kalshi, accusing it of violating state gambling laws. Authorities allege the service allowed users to trade on event outcomes without the license required under local regulations.

“Kalshi may present itself as a ‘prediction market,’ but in reality the company is engaged in illegal gambling and is taking bets on elections in Arizona. This violates state law, and no company has the authority to decide which laws it will follow,” Arizona Attorney General Kris Mayes said.

The case marks the first public instance in which state authorities have moved from administrative pressure to criminal prosecution against such platforms.

In a 20-count indictment, Mayes brought 16 charges related to operating an unlicensed gambling business and four counts tied to accepting wagers on elections. While the alleged offenses are classified as lower-level violations, the nature of the charges could set a precedent for other jurisdictions.

Kalshi spokesperson Elizabeth Diana told Business Insider the company intends to challenge the charges in court. Kalshi maintains that its offerings are financial event contracts that fall under federal oversight by the Commodity Futures Trading Commission (CFTC).

Similar allegations have previously been raised against Kalshi in other states, though those cases were limited to civil actions.

The case also carries a political dimension. Kalshi has ties to Donald Trump Jr., who serves as a strategic adviser to the company. Members of the Trump administration have previously voiced support for prediction markets and backed them in disputes with state regulators.

Gambling Park previously reported that Kalshi banned a gubernatorial candidate and a MrBeast employee over alleged insider trading.