Arizona’s Kalshi prosecution sparks federal lawsuit in escalating regulatory clash

By: Jim Small

Outlets: Arizona Mirror

Published: April 2, 2026

Words: 452

Last Updated: 3 months, 4 weeks ago

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Three weeks after Arizona filed criminal charges against online prediction market company Kalshi for allegedly violating the state’s gambling laws, the Trump administration sued the Grand Canyon State, saying it has no authority to regulate prediction markets.

The lawsuit from the Commodity Futures Trading Commission, the federal agency that oversees prediction markets, accuses Arizona of infringing on the commission’s “exclusive” authority to regulate Kalshi and other companies — and it asks a federal judge …

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