Arizona Attorney General Files Criminal Charges Against Kalshi

• Arizona Attorney General Kris Mayes today filed criminal charges against Kalshi
• The attorney general purports Kalshi operates an illegal gambling business in the state without a license
• The charges come just four days after Kalshi preemptively sued the state and Mayes

Arizona Attorney General Kris Mayes today filed criminal charges against Kalshi in Maricopa County Superior Court, alleging the prediction market company is operating an illegal gambling business in the state without a license.

The charges come four days after Kalshi filed a preemptive lawsuit against Mayes and several key Arizona Department of Gaming officials.

“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,” Mayes said in a released statement.

Twenty Criminal Counts

Attorney General Mayes accused Kalshi of 20 criminal counts, ranging from illegal betting and wagering to illegal election wagering in the state.

The counts allege Kalshi accepted bets from Arizona residents on a wide range of events, including professional and collegiate sports, prop bets on individual player performances, and whether the SAVE Act would become law. Additionally, the charges also included four counts of election betting, 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.

The most recent criminal count came on or about March 12, 2026, when the attorney general alleged Kalshi accepted a parlay or combo bet on the number of points scored in the Phoenix Suns vs. Indiana Pacers matchup on the same date, if Devin Booker would score more than 25 points, and if Jarace Walker would total more than six rebounds.

According to the attorney general, Arizona law prohibits operating an unlicensed wagering business and outright bans betting on elections.

A Kalshi spokesperson criticized the charges, noting the prediction market company “is subject to federal jurisdiction.”

“Sadly, a state can file criminal charges on paper thin arguments. States like Arizona want to individually regulate a nationwide financial exchange, and are trying every trick in the book to do it. As other courts have recognized and the CFTC affirms, Kalshi is subject to federal jurisdiction. It’s different from what sportsbooks and casinos offer their customers, and it should not be overseen by a patchwork of inconsistent state laws,” the Kalshi spokesperson said to Sports Betting Dime.

Four Days After Kalshi Lawsuit

The criminal charges came four days after Kalshi filed a preemptive lawsuit against Attorney General Mayes and several Arizona Department of Gaming officials to stymie any potential legal action against its sports event contracts.

Kalshi filed a complaint for permanent injunction and declaratory relief in U.S. District Court for the District of Arizona against Mayes and several high ranking officials with the Arizona Department of Gaming, including its director Jackie Johnson.

According to counsel for Kalshi, previous actions from the Arizona Department of Gaming and the Attorney General, including a cease-and-desist letter sent to the company in May 2025, led to the decision to take preemptive legal action.

Mayes criticized Kalshi’s lawsuit during today’s filing.

“Kalshi is making a habit of suing states rather than following their laws. In the last three weeks alone, the company has filed lawsuits against Iowa and Utah, and now Arizona,” she said. “Rather than work within the legal frameworks that states like Arizona have established, Kalshi is running to federal court to try to avoid accountability.”