Arkansas Sues Kalshi, Alleging Deceptive Trading Practices and Unjust Enrichment

Arkansas Attorney General Tim Griffin sued Kalshi, alleging the prediction-market platform misled customers by presenting itself as legal and safe while offering unlicensed gambling products in violation of the state's Deceptive Trade Practices Act, and by making its services available to underage users. The suit also claims unjust enrichment and makes Arkansas the latest state to challenge Kalshi's regulatory status. The case turns on whether Kalshi's event contracts are federally regulated derivatives or state-level gambling, a semantic battle already joined by other states. What to watch next is whether other state attorneys general file similar actions and how courts resolve the federal-versus-state jurisdiction question.