Arkansas sues Kalshi over alleged gambling and risk disclosures

Arkansas has sued Kalshi over alleged illegal gambling, with a civil complaint that also challenges how the platform discloses trading risks to consumers.

Attorney General Tim Griffin filed the 57-page complaint against KalshiEX LLC and Kalshi Inc. on 4 November in the Circuit Court of Independence County, case 32CV-26-717. The state’s allegations cover sports, election and entertainment contracts.

Griffin’s announcement argues that Kalshi offered wagering to Arkansas residents without the state licences and oversight required of gambling operators, including access for people as young as 18.

Complaint targets risk disclosures

Paragraph 198 alleges that Kalshi concealed or inadequately disclosed risks involving insider trading, manipulation and advance knowledge of contract outcomes. It also challenges disclosures about consumers trading against participants with informational, technological or financial advantages.

The following paragraph alleges that these omissions misled consumers about the platform’s legality, safety and trading risks. These are claims made by Arkansas, not findings that Kalshi committed misconduct.

State seeks an injunction and restitution

The complaint brings claims under Arkansas’s Deceptive Trade Practices Act and an unjust-enrichment claim. Its requested remedies include an injunction, restitution, damages, civil penalties and unpaid taxes. It also demands a jury trial on issues eligible for one.

Griffin cites Kalshi’s self-exclusion tools, deposit limits and gambling-support resources as part of his argument that the activity should be treated as gambling. The complaint itself does not grant the relief Arkansas seeks.

Kalshi has argued in its Nevada litigation that federal derivatives law gives the CFTC exclusive jurisdiction over its sports event contracts. Prediction Frontier did not locate a case-specific public response to the Arkansas complaint at publication.