Arkansas Sues Kalshi, Alleging Illegal Gambling Operation
Summary
- Arkansas said it had sued prediction-market platform Kalshi over allegations that it operated illegal gambling.
- Arkansas said that regardless of the prediction-market label, putting money on the outcome of sporting events is fundamentally gambling.
- Arkansas said it is seeking restitution for losses, civil penalties and an injunction over alleged violations of state gambling law.
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Arkansas has sued prediction-market platform Kalshi, alleging it operated illegal gambling.
The Block reported on November 4 that Arkansas Attorney General Tim Griffin said in a statement the state filed the lawsuit because Kalshi had built a global business that allows users to bet on the outcome of "almost anything."
Arkansas argues that, regardless of the prediction-market label, wagering money on the outcome of sporting events is gambling in substance. Griffin said Kalshi attracted users in Arkansas without complying with the licensing, oversight and restriction requirements imposed on gambling operators.
The state is seeking restitution for losses, civil penalties and an injunction against Kalshi for alleged violations of Arkansas gambling law. He added that Kalshi is aware its platform can expose users to real and specific risks, including excessive betting, financial losses, depression and other mental health harms.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul