- Arkansas AG Tim Griffin has filed a lawsuit against KalshiEX LLC and Kalshi Inc., alleging the companies are operating an illegal gambling platform by allowing Arkansas residents to wager money on the outcomes of sporting, political, and entertainment events. The lawsuit alleges Kalshi violated the Arkansas Deceptive Trade Practices Act by offering real money wagering to state residents without obtaining the licenses, regulatory approvals, and oversight required of lawful gambling operators.
- AG Griffin argued that the platform’s prediction market label does not change the nature of its activities, maintaining that wagering money on the outcome of events constitutes gambling under Arkansas law. The complaint highlights Kalshi’s use of features commonly associated with gambling platforms, including self-exclusion tools, deposit limits, trading breaks, and partnerships promoting gambling addiction resources. The state also raised concerns about potential consumer harms associated with the platform, including excessive wagering, financial losses, and numerous mental health effects. The lawsuit notes that Kalshi permits individuals as young as 18 to participate in its real money prediction markets.
- AG Griffin is seeking restitution, civil penalties, unpaid taxes, and injunctive relief to address the alleged violations.