By Howard Fisher | Arizona Capitol Times
Key Points:
- Federal judge allows Arizona to prosecute online gambling site Kalshi
- Kalshi claims its activities are regulated by the Commodity Futures Trading Commission
- Kalshi faces 20 criminal charges, including 16 sports-related counts
A federal judge is refusing to block the state of Arizona from prosecuting an online gambling site for violating state gaming laws.
In an opinion late April 8, U.S. District Court Judge Michael Liburdi acknowledged a legal conflict between Kalshi and the state over which laws take precedence. But he said that, for the moment, he would allow Attorney General Kris Mayes to continue pressing charges.
Kalshi contends that its activities, like letting people bet on everything from political and social events to sports and weather, are regulated by the federal Commodity Futures Trading Commission.
That, the company’s attorneys told the judge, trumps arguments by Mayes, who says state laws allow only regulated entities to take wagers — and only on sporting events. So they asked Liburdi to issue an injunction barring the state from pursuing the 20 criminal charges it has brought against Kalshi.
