Arizona Attorney General Kris Mayes has filed criminal charges against prediction market platform Kalshi for operating an illegal gambling business without a license and for election wagering. The 20-count complaint accuses the company of engaging in unlicensed gambling activities, including accepting bets from Arizona residents on various events, including state elections, which is illegal in Arizona. This is the first time a state has pursued such charges against the company. The charges follow a surge in cease-and-desist letters, lawsuits, and other official actions from states over KALShi's activities, which have been criticized by officials as violating state gambling laws. However, prediction sites argue they are not in violation of state law as they are subject to federal regulation via the Commodity Futures Trading Commission.