Arkansas attorney general sues online firms Kalshi, VGW, accuses both of offering state-prohibited gambling
Arkansas Attorney General Tim Griffin sued Kalshi and VGW, accusing them of offering illegal gambling services and misleading consumers.Summary
Arkansas Attorney General Tim Griffin filed lawsuits on Wednesday against Kalshi, a prediction markets platform, and VGW, an interactive entertainment company, accusing both of providing illegal gambling services in Arkansas without a license and misleading consumers about the legality of their services in violation of the Arkansas Deceptive Trade Practices Act. The suits seek restitution, penalties, taxes, orders to stop unlawful practices, and refunds for customers. Griffin argued that Kalshi's use of gambling operator tools like self-exclusion and deposit limits shows it is aware its products are gambling, despite calling itself a prediction market, and that VGW's virtual currency scheme, where consumers buy Gold Coins and receive Sweeps Coins that can be redeemed for cash, constitutes gambling. The suit against Kalshi was filed in Independence County Circuit Court and the one against VGW in White County Circuit Court.
(Source：Arkansas Online)