Arkansas Sues Kalshi, Alleging It Operates an Illegal Gambling Platform

Odaily Report: Arkansas Attorney General Tim Griffin filed a lawsuit on Wednesday against prediction market platform Kalshi, alleging that it operates an illegal gambling platform. Griffin stated that betting money on predicting the outcome of team games constitutes gambling, and Arkansas law explicitly prohibits gambling on unregulated platforms. The complaint alleges that Kalshi allows users aged 18 and older to place bets on sports and entertainment events, circumventing the state's restrictions on casinos and sports betting; Griffin is asking the court to rule that Kalshi violated the state's deceptive trade practices law and to order restitution. Kalshi is regulated by the U.S. Commodity Futures Trading Commission (CFTC) and has previously argued that its sports contracts are CFTC-regulated financial derivatives rather than gambling.