Arkansas Sues Kalshi, Calling Its Sports Contracts Unlicensed Gambling Open to 18-Year-Olds
Arkansas sued Kalshi, accusing the prediction market of running an unlicensed sports-betting business that accepts wagers from residents as young as 18.Summary
Arkansas Attorney General Tim Griffin sued Kalshi on Wednesday, accusing the prediction market of operating an unlicensed sports-betting business that took wagers from Arkansas residents as young as 18. The 57-page complaint, filed under the Arkansas Deceptive Trade Practices Act in the Circuit Court of Independence County, seeks restitution, civil penalties, unpaid gambling taxes, damages and an injunction, and requests a jury trial. The state argues that Kalshi's own consumer-protection tools—self-exclusion features, deposit limits, trading breaks and a partnership with the National Council for Problem Gambling—are evidence that it operates as a gambling operator, and cites Kalshi's acknowledgment that nearly three times as many users lose money as make money. Age is central: Arkansas permits casino gaming and sports wagering only for those 21 and older, while Kalshi accepts traders from 18, a group that moved an estimated $5.4 billion on the platform this year through late August. Arkansas becomes the seventh state to charge, sue or restrict Kalshi, joining actions including criminal charges in Arizona and Utah, a $36 billion claim from New York and daily penalties sought by Nevada. The Commodity Futures Trading Commission, which oversees Kalshi as a designated contract market, has sided with the company and sued ten states, including Utah, arguing Congress gave it sole authority over prediction markets; appellate courts remain split, with the Third Circuit favoring Kalshi and the Ninth Circuit favoring Nevada.
(Source：Financial And Business News | Finance Magnates)