Arizona Attorney General Kris Mayes has filed criminal charges against KalshiEx LLC and Kalsh Trading LLC, a prediction markets platform, for operating an unlicensed gambling business and offering election wagering in the state. Mayes alleges that these actions violate the state's laws. The charges come after the Commodity Futures Trading Commission (CFTC) indicated a more supportive federal stance towards prediction markets, which has been defined as regulated derivatives venues rather than gambling operators. The company has positioned its event contracts as federally regulated derivatives rather than regulated products. The case is part of a growing legal dispute between KalsHI and state regulators, with most cases related to sports gambling, not election-related bets.