Arkansas Sues Kalshi as State Crackdown on Prediction Markets Expands

Kalshi faces another legal battle as Arkansas sues over its event contracts, escalating a wider dispute between state gambling regulators and the CFTC. Arkansas has become the latest US state to challenge the growing prediction market industry, filing a lawsuit against Kalshi over allegations that the platform allows residents to gamble on sports and other events without obtaining the licenses required under state law. The case adds to an expanding legal dispute over whether prediction markets should operate under federal financial regulations or comply with individual states' gambling restrictions.