Predictions platform Kalshi now has Arkansas to deal with, on top of Utah and a growing list of states.
Arkansas sued the federally regulated prediction market on Wednesday, accusing it of running an illegal gambling operation. Attorney General Tim Griffin filed the suit, joining actions from other states that say Kalshi skirts anti-gambling laws.
Griffin said the case is simple.
“It doesn’t take a genius to understand that wagering money on whether the Razorbacks win or lose is gambling,” Griffin said in a news release. “And gambling on an unregulated platform is squarely prohibited by Arkansas law.”
Kalshi, regulated by the Commodity Futures Trading Commission (CFTC), lets users bet on the outcome of real-world events, including sports games. CoinDesk messaged Kalshi for comment and had not received a response as of writing.
The complaint calls Kalshi a “pocket-sized bookie.”
It says the company ignores state limits on casinos and sports betting by letting users as young as 18 wager real money on sports and entertainment events. Griffin wants a judge to declare that Kalshi broke the state’s deceptive trade practices act and to order restitution.
Utah went further last week.
It filed 14 criminal charges against Kalshi and co-founders Tarek Mansour and Luana Lopes Lara, days after suing the company in civil court. Arizona, Connecticut, Massachusetts, Michigan and Nevada have also filed charges, sued or restricted access.
Kalshi has previously argued that its sports contracts are financial derivatives overseen by the Commodity Futures Trading Commission, not gambling. The agency has since sued Utah, arguing that only Washington can regulate these contracts.
Griffin also sued VGW, an Australian company behind Chumba Casino, LuckyLand Casino, LuckyLand Slots and Global Poker, in White County. The suit says VGW’s sites let users wager “Sweeps Coins” that can be redeemed for cash.