Arizona Attorney General Files 20 Criminal Charges Against Kalshi

State alleges prediction market platform violated laws by offering wagers on sports, elections, and other events

Mar. 18, 2026 at 1:07am

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The Arizona Attorney General's office has filed 20 criminal misdemeanor charges against the prediction market platform Kalshi, accusing the company of "operating an illegal gambling business" in the state. The charges include allegations that Kalshi accepted wagers on college and professional sporting events, player performance props, and even election outcomes - all of which are prohibited under Arizona law.

Why it matters

This case highlights the ongoing legal battles between states and prediction market platforms over the legality of their operations. While some states have legalized and regulated sports betting, many still prohibit wagering on events like elections. Kalshi has taken a combative approach, filing preemptive lawsuits against states, but Arizona is now striking back with criminal charges.

The details

The 20 charges filed by the Arizona Attorney General's office cover a range of alleged violations, including wagers accepted on Arizona men's and women's college basketball games, Super Bowl prop bets, and election outcomes for the 2026 Arizona gubernatorial race, 2026 Arizona Republican gubernatorial primary, and 2026 Arizona Secretary of State race. Unlike other states, Arizona explicitly forbids election wagering.

  • The State of Arizona filed its lawsuit in the Superior Court of Arizona in Maricopa County on Monday, March 17, 2026.
  • Arizona Attorney General Kris Mayes announced the charges against Kalshi on Tuesday, March 18, 2026.

The players

Kalshi

A prediction market platform that offers contracts on a variety of events, including sports, elections, and other outcomes. Kalshi is registered with the Commodity Futures Trading Commission (CFTC) as a federally regulated exchange.

Kris Mayes

The Attorney General of the State of Arizona, who filed the 20 criminal charges against Kalshi.

Michael Selig

The new chairman of the Commodity Futures Trading Commission (CFTC), who has voiced support for prediction markets and criticized the Arizona Attorney General's actions as an inappropriate "jurisdictional dispute."

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What they’re saying

“The Arizona Attorney General today filed criminal charges against one of our registered exchanges related to prediction markets. This is a jurisdictional dispute and entirely inappropriate as a criminal prosecution. The @CFTC is watching this closely and evaluating its options.”

— Mike Selig, Chairman, Commodity Futures Trading Commission

What’s next

The judge in the case will decide whether to allow Kalshi to continue operating in Arizona while the legal battle plays out.

The takeaway

This case highlights the ongoing tensions between state governments and federally regulated prediction market platforms over the legality of certain types of event contracts, particularly those involving elections. It raises questions about state versus federal jurisdiction and the future of the prediction market industry.