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Arizona prosecutors filed 20 criminal counts against two Kalshi companies on March 17, 2026, alleging unlicensed wagering and unlawful bets on elections. The charges are allegations, not findings of guilt. A federal injunction later blocked the state prosecution, but Arizona asked the Ninth Circuit to dissolve it; the latest located update, dated September 25, 2026, did not establish whether that request succeeded.
What did Arizona charge Kalshi with?
Arizona Attorney General Kris Mayes announced that the state filed a 20-count criminal information against KalshiEx LLC and Kalshi Trading LLC. Prosecutors alleged the companies accepted wagers from Arizona residents without a state license and offered election wagering prohibited by Arizona law. The announcement described wagers involving professional and college sports, individual-player propositions, and whether the SAVE Act would become law.
Four counts concerned election wagering on these markets:
- The 2028 U.S. presidential race.
- The 2026 Arizona gubernatorial race.
- The 2026 Arizona Republican gubernatorial primary.
- The 2026 Arizona Secretary of State race.
Those descriptions come from the Arizona Attorney General’s March 17 charging announcement. They state the prosecution’s allegations; they do not establish that Kalshi or either company committed a crime.
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Why is Arizona calling Kalshi gambling?
Arizona’s theory is that the contracts at issue function as wagers under state law, and that offering them to Arizona residents without the required state authorization violates its gambling rules. The state also alleged that offering contracts tied to election outcomes violated Arizona’s separate prohibition on election wagering.
Mayes characterized Kalshi’s business as an illegal gambling operation and said it was taking bets on Arizona elections. Those were the attorney general’s descriptions of the state’s case, not a court’s final characterization. The central legal disagreement is whether these event contracts are governed as gambling under state law, as federally regulated derivatives, or in some circumstances both.
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Can a state regulate Kalshi if the CFTC oversees it?
Kalshi’s federal case argued that the Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive jurisdiction over designated contract markets and preempts state gambling enforcement against its event contracts. The United States later brought its own case asserting federal preemption. Arizona, by contrast, maintained that its gambling laws applied to the contracts it challenged.
| Issue | Federal and Kalshi position | Arizona position |
|---|---|---|
| Source of authority | The Commodity Exchange Act and federal oversight of designated contract markets govern the contracts and preempt state enforcement. | State gambling laws apply to what Arizona alleges are unlicensed wagers offered to its residents. |
| How to characterize the contracts | Event contracts are derivatives subject to federal regulation. | The challenged contracts are wagering, including prohibited election wagering. |
| Legal status | The United States asserted preemption in its case; the May 5, 2026 order found the federal plaintiffs likely to prevail at the preliminary stage. | Arizona’s criminal allegations remain to be resolved; the state later sought to dissolve the injunction blocking its prosecution. |
On May 5, 2026, the district court denied Kalshi’s motion for a preliminary injunction but granted preliminary relief to the federal plaintiffs, finding they were likely to prevail on their preemption claim at that stage. That was a preliminary assessment, not a final resolution of every claim and not a criminal verdict. Whether federal derivatives regulation displaces state rules on gambling, sports betting, and related consumer protections remains a broader legal dispute.
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What did the Ninth Circuit decide, and does it control Arizona’s case?
On August 28, 2026, the Ninth Circuit ruled in a separate Nevada dispute, KalshiEX, LLC v. Assad, that the Commodity Exchange Act did not preempt Nevada’s authority to regulate Kalshi sports event contracts as sports betting. The case concerned Nevada and sports contracts; it did not decide Arizona’s criminal charges or the legality of the election contracts alleged there.
Arizona Attorney General Mayes called the ruling a win for state authority and said her office was reviewing its implications for the Arizona litigation. The decision created a significant appellate development for the competing state and federal arguments, but it should not be treated as a ruling on the Arizona case itself.
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Has Arizona’s case against Kalshi been stopped?
The prosecution was blocked by an injunction, but Arizona subsequently asked the Ninth Circuit to dissolve that injunction. An Arizona Mirror report dated September 25, 2026, said the state relied on the Assad decision in making its request. The report also said Kalshi sought rehearing en banc and that formal issuance of the panel ruling was paused in that posture.
As of October 8, 2026, the sources available for this account do not establish the outcome of Arizona’s request after the September 25 report. It would therefore be premature to say that the Arizona prosecution has resumed or that the injunction remains unchanged beyond that reported status.
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- HIGH QUALITY POKER CHIPS - Our chips are made of superior material. There are professional casino style, exquisite pattern details and excellent touch to meet customer requirements for professional and high quality product.
- STURDY ALUMINUM CARRYING CASE - Our aluminum Poker Chip Case or Poker Chip Holder gives you a convenient option for storage or an easy and safe way to transport. The included tray inserts are covered in a black velour fabric that resists dust, keeping each piece in this set bright and new.
- CLASSIC GAME FOR ALL AGES - Poker set is a classic table game that people of all ages truly enjoy. And it is a good gift choice for men and women on birthday,Day, Christmas and other festival.
- HAVE FUN WITH CHIPS - Classical chips set is ideal for Texas Holdem, Blackjack, tournaments, card clubs and so on. You can enjoy it with your friends and families on party until late night.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
