Arizona AG Charges Kalshi with Illegal Gambling and Election Wagering

AG: Arizona Press Releases

Filed March 17th, 2026

Detected March 18th, 2026

Summary

Arizona Attorney General Kris Mayes has filed criminal charges against KalshiEx LLC and Kalshi Trading LLC for operating an illegal gambling business and engaging in election wagering in Arizona. The charges include 20 counts related to accepting bets on various events, including professional sports and upcoming elections.

View original document View source feed page

What changed

The Arizona Attorney General's office has filed a 20-count criminal information against KalshiEx LLC and Kalshi Trading LLC, the operators of the Kalshi prediction markets platform. The charges allege that Kalshi operated an illegal gambling business without a license in Arizona and engaged in prohibited election wagering. Specific allegations include accepting bets from Arizona residents on professional and college sports, individual player performance, and the outcome of legislative events, as well as taking bets on the 2028 presidential race and various 2026 Arizona state elections.

This action signifies a direct enforcement action against a prediction market platform for violating state gambling and election laws. Regulated entities, particularly those operating in financial markets or offering novel betting platforms, should be aware of the stringent prohibitions against unlicensed gambling and election wagering in Arizona. While no specific compliance deadline is mentioned for other entities, Kalshi is facing criminal charges, indicating severe legal consequences for non-compliance. The Attorney General's office has also noted that Kalshi preemptively sued the state, highlighting potential legal challenges and the aggressive stance taken by the regulator.

What to do next

Review operations for compliance with Arizona's gambling and election wagering laws.
Consult legal counsel regarding the implications of prediction markets and state-specific regulations.
Monitor ongoing legal proceedings involving Kalshi and the State of Arizona.

Penalties

Criminal charges filed, implying potential fines and sanctions upon conviction.

Source document (simplified)

Attorney General Mayes Charges Kalshi With Illegal Gambling Operation, Election Wagering in Arizona

Tuesday, March 17, 2026

PHOENIX — Arizona Attorney General Kris Mayes today filed criminal charges against KalshiEx LLC and Kalshi Trading LLC, the companies behind the Kalshi prediction markets platform, for operating an illegal gambling business in Arizona without a license as well as 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 20-count criminal information alleges that Kalshi accepted bets from Arizona residents on a wide range of events in violation of Arizona law. These events included professional and college sporting contests, proposition bets on individual player performance, and whether the SAVE Act would become law. Among the charges are four counts of election wagering, including bets on the 2028 presidential race, the 2026 Arizona gubernatorial race, the 2026 Arizona Republican gubernatorial primary, and the 2026 Arizona Secretary of State race.

Arizona law prohibits operating an unlicensed wagering business, and separately bans betting on elections outright.

On Thursday, March 12, Kalshi sued the State of Arizona preemptively in an attempt to avoid accountability under Arizona law.