Arizona accuses Kalshi of operating illegal gambling business
https://thehill.com/business/5789394-arizona-kalshi-allegations-illegal-gambling-business/
Authorities in Arizona have filed criminal charges against the prediction market provider Kalshi, becoming the first state to do so and setting up a legal battle that would get to the core of growing questions about the companys business.
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Included in the charges are four counts of election wagering, including bets on the 2028 presidential race, the 2026 Arizona gubernatorial race and GOP Republican primary and the 2026 Arizona secretary of State race, according to the states attorney office.
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Regulated sports wagering is legal in Arizona, but state law prohibits operating an unlicensed wagering business and separately bans betting on elections outright.
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President Trumps administration has thrown its support behind the multibillion-dollar prediction market industry, further amplifying a state-versus-federal fight for regulatory control. Donald Trump Jr., the presidents eldest son, is a strategic adviser for Kalshi.
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