Arkansas sues Kalshi over alleged unlicensed gambling

Arkansas Attorney General Tim Griffin has sued prediction-market operator Kalshi, alleging it offered unlicensed gambling to state residents in violation of the Arkansas Deceptive Trade Practices Act. The complaint seeks restitution, civil penalties, unpaid taxes and court orders restricting the company’s activities; those remedies have not been awarded, and the allegations have not been established in court. Filed November 4 in Independence County Circuit Court, the lawsuit names KalshiEX LLC and Kalshi Inc. as defendants. It challenges the company’s event contracts involving sports, elections and entertainment, which Griffin’s office says allowed Arkansans to wager money without state gambling licenses or required tax payments. The complaint also challenges access for users aged 18 to 20. Arkansas generally sets 21 as the minimum age for regulated casino gambling and sports betting, while Kalshi allows eligible users to open accounts at 18, according to the state’s filing. Griffin’s office argues that the company’s contracts fall under state gambling restrictions regardless of how Kalshi describes them. The state further alleges that the platform’s deposit limits,...