Arkansas Sues Prediction Market Kalshi Over Alleged Illegal Gambling Platform

Arkansas Attorney General Tim Griffin sued KalshiEX LLC and Kalshi Inc., alleging the prediction market operates an illegal, unregulated gambling platform for state residents in violation of the Arkansas Deceptive Trade Practices Act. The state seeks restitution, penalties, taxes, and an injunction. The lawsuit is part of a broader multi-state crackdown on prediction markets, with federal courts split over whether states or the CFTC have jurisdiction.