Arizona’s criminal case against Kalshi permanently blocked by federal judge

A federal judge has permanently blocked Arizona Attorney General Kris Mayes from prosecuting Kalshi, halting the state’s unprecedented attempt to criminally charge an online prediction market company with violating state gambling laws.

Even though regulating gambling is “among the most rudimentary exercises of state police power,” Judge Michael Liburdi concluded that federal law preempts the state from enforcing those laws against Kalshi and other prediction market companies because they are exclusively regulated by the Commodity …