Kalshi hit with Arkansas lawsuit over unlicensed sports betting

Arkansas Attorney General Tim Griffin has filed a lawsuit against prediction market operator Kalshi, accusing the company of offering illegal gambling services to state residents without the licenses and oversight required under Arkansas law. Summary Arkansas Attorney General Tim Griffin sued KalshiEX LLC and Kalshi Inc. on November 4, accusing the prediction market of operating an illegal gambling platform. The lawsuit alleges Kalshi allowed Arkansas residents as young as 18 to wager on sporting events, elections and entertainment without required state gambling licenses. Arkansas seeks consumer restitution, civil penalties, unpaid taxes and court orders restricting the company’s alleged unlawful activities. Kalshi maintains that its event contracts fall under federal derivatives regulation, while state officials argue that sports-related contracts remain subject to gambling laws. The case follows criminal charges against Kalshi in Utah and a separate CFTC lawsuit challenging state enforcement over federally regulated prediction markets. Griffin’s November 4 announcement identified KalshiEX LLC and Kalshi Inc. as defendants, alleging multiple violations of the Arkansas Deceptive T...