Arkansas sues Kalshi, alleging illegal gambling
Arkansas accuses prediction market Kalshi of running illegal gambling, joining Utah and other states that have brought criminal or civil charges.
Arkansas has filed a lawsuit against Kalshi, accusing the prediction market operator of running an illegal gambling business, according to a CoinDesk report. The filing makes Arkansas the newest U.S. state to take legal action against the platform.
The state joins Utah and several others that have already brought criminal or civil charges against Kalshi over its event-based contracts, the report said.
A widening state front
- Arkansas alleges the platform operates illegal gambling under state law.
- Utah and multiple other states have filed criminal or civil charges.
- The actions represent a coordinated pushback by state authorities against event contracts.
Kalshi operates as a federally regulated exchange for event contracts, a structure the company has argued places it under federal rather than state oversight. State officials pursuing the cases contend those contracts amount to wagering and fall within state gambling rules.
The outcome of the state lawsuits could shape how prediction markets are treated across the U.S., particularly where federal market oversight and state gambling statutes overlap. No resolution has been reached in the Arkansas action.