Story perspectives

Arizona AG Charges Kalshi with Illegal Gambling Operations

3/19/2026

Summary

Story summary

Arizona Attorney General Kris Mayes filed criminal charges against Kalshi, alleging it operates an illegal gambling business.
Mayes says Kalshi violates state laws by accepting bets on elections and sports.
Kalshi's spokesperson says the company operates under federal jurisdiction and is not subject to state rules.
Kalshi faces a nationwide class action alleging it misleads users about betting dynamics.
Multiple states are challenging Kalshi's operations.

History

Historical Context

The Professional and Amateur Sports Protection Act (PASPA), enacted in 1992, prohibited states from legalizing sports betting, aiming to protect sports integrity. However, the Supreme Court overturned PASPA in 2018, ruling it unconstitutional under the Tenth Amendment. This decision has led to states like Arizona challenging its legacy, as they navigate the evolving landscape of sports gambling regulation.

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Story summary

Arizona Attorney General Kris Mayes filed criminal charges against Kalshi, alleging it operates an illegal gambling business.
Mayes says Kalshi violates state laws by accepting bets on elections and sports.
Kalshi's spokesperson says the company operates under federal jurisdiction and is not subject to state rules.
Kalshi faces a nationwide class action alleging it misleads users about betting dynamics.
Multiple states are challenging Kalshi's operations.

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