The Arizona Attorney General has filed criminal charges against Kalshi, accusing him of operating an illegal gambling operation.

CoinFeed reported on March 18 that, according to The Block, Arizona Attorney General Kris Mayes has filed a criminal complaint against the prediction market platform Kalshi, accusing it of illegally offering sports betting and election betting. Mayes stated that Kalshi marketed itself as a "prediction market" but was actually operating an illegal gambling business and accepting bets on Arizona elections, violating state law. The charges include four counts of election betting, including on the 2028 presidential election and the 2026 Arizona gubernatorial election. Kalshi argues that its event contracts are regulated by the CFTC and that federal power should take precedence over state law. A Kalshi spokesperson stated that the charges are "seriously flawed" and a "game to circumvent federal court," and that they will actively defend themselves in the case.