Judge bars Arizona regulating prediction market, pause prosecution of Kalshi

5 hours ago

A federal judge temporarily blocked Arizona from enforcing its gambling laws against prediction market operators like Kalshi.
The judge ruled that event contracts fall under the Commodity Exchange Act as 'swaps,' placing them under federal CFTC jurisdiction, not state law.
Arizona had filed criminal charges against Kalshi, alleging illegal gambling on political outcomes and sports, marking a new legal battle over regulation.
Kalshi argues it is a financial marketplace for swaps, not gambling, and should only answer to the CFTC, not state authorities.
Other states have taken mixed legal actions against Kalshi, with some rulings favoring states and others favoring the company, while the Trump administration supports the platforms.

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