Arizona files criminal charges against Kalshi, accusing prediction market of illegal gambling

Arizona prosecutors filed criminal charges against the prediction market Kalshi on Monday, accusing the platform of running an illegal gambling outfit in the Grand Canyon State.

The 20-count complaint was filed in Maricopa County charging that Kalshi allegedly operates a gambling business in Arizona without a license and takes illegal bets on elections.

“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,” state AG Kristin Mayes said in a statement.

“No company gets to decide for itself which laws to follow.”

Kalshi did not immediately respond to an NBC News request for comment.

This is the latest state action taken against Kalshi, which insists it’s not a gambling operation — but merely a conduit for federally regulated swaps, a type of contract often found in financial investing,

Sports gambling is legal in 39 states and the District of Columbia. Wagers can be placed digitally in 32 of those jurisdictions.

Sports betting companies, such as FanDuel and DraftKings, have had to negotiate their way into those states, meeting regulatory standards and paying taxes to operate there.

Legal sports bets can be made online in Arizona and at brick-and-mortar locations.

This is a developing story. Please check back for updates.