Criminal Charges Amp Up Growing State Resistance to Kalshi

The rapid expansion of prediction markets is facing increasingly aggressive pushback from state officials pursuing a sprawling patchwork of lawsuits and cease-and-desist orders.

The stakes in these legal battles were amped up on Tuesday after Arizona’s attorney general brought criminal charges against Kalshi, the largest prediction market platform in the US, accusing it of running an illegal gambling operation in the state.

Prediction markets have exploded in popularity over the past year by offering novel financial contracts that make it possible to bet on the outcome of everything from the Super Bowl to the leadership struggles in Iran.

While federal ...