PHOENIX — Attorney General Kris Mayes has filed charges against Kalshi over alleged illegal gambling practices in Arizona.
Mayes announced on Tuesday that she filed criminal misdemeanor charges against KalshiEx LLC and Kalshi Trading LLC over illegal gambling and for election wagering.
"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 filing alleges Kalshi accepted bets from Arizona residents on events such as professional and college sporting contests, proposition bets on individual player performance, and whether the SAVE Act would become law.
Additionally, there are four counts of election wagering, including bets on the 2028 presidential race, the 2026 gubernatorial race, the 2026 Arizona Republican gubernatorial primary, and the 2026 Arizona Secretary of State race.
Mayes says these bets are against Arizona law, which prohibits operating an unlicensed wagering business, and separately bans betting on elections outright.
Mayes stated that Kalshi preemptively sued the State of Arizona on March 12 "in an attempt to avoid accountability under Arizona law."
A copy of the filing is available here.
