Arkansas files suit accusing Kalshi of unlicensed gambling in state
Arkansas is seeking restitution, penalties, taxes and an injunction, while Kalshi has argued its event contracts fall under federal oversight.
Key takeaways
- Arkansas alleges Kalshi violated the state’s Deceptive Trade Practices Act.
- The state is seeking restitution, penalties, taxes and an injunction.
Arkansas sued prediction-market operator Kalshi, alleging it offered residents an illegal, unregulated gambling platform, Attorney General Tim Griffin said Wednesday. The state claims the company violated the Arkansas Deceptive Trade Practices Act.
The lawsuit names KalshiEX LLC and Kalshi Inc. and seeks restitution, penalties, taxes and an injunction. Griffin alleged Kalshi let residents as young as 18 bet on sports and entertainment events without gambling licenses or paying required taxes.
Kalshi is regulated by the Commodity Futures Trading Commission and has argued in other cases that its event contracts fall under exclusive federal jurisdiction, outside state gambling laws.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
