The state of Arizona filed criminal charges against everything Could represent a new strategy in states’ legal battles with prediction markets, Bloomberg reports I mentioned Wednesday (March 18).
Daniel Wallachfounder Wallach legalHe told Bloomberg that Arizona’s strategy could enable the state to shut down Kalshi’s operations instead of imposing fines.
“This may reflect a fine-tuning of states’ strategies on how to attack prediction markets, using state court civil and criminal remedies rather than the tired approach of sending cease and desist letters,” Wallach said.
Arizona’s legal action is the latest of more than a dozen lawsuits filed against prediction markets, according to the report.
This happened despite the Fed Commodity Futures Trading Commission The report said that the CFTC demands sole oversight of prediction markets.
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Chairman of the Commodity Futures Trading Commission Michael Selig Said on Tuesday (March 17) mail On
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“As the federal government moves away from consumer protection, state attorneys general have stepped up their efforts,” Massachusetts Attorney General Andrea Joy Campbell told Bloomberg.
Bloomberg reported that the future of prediction markets will likely be decided by the Supreme Court, as the number of states filing lawsuits would likely lead to conflicting court decisions.
Arizona Attorney General Chris Mayes He announced the filing of criminal charges against Calci on Tuesday, alleging that the platform violated state laws prohibiting the operation of a website Unlicensed betting Businesses that prohibit betting on elections.
“Calci may brand itself as a ‘predictive market,’ but what it is actually doing is running an illegal gambling operation and betting on Arizona elections, both of which violate Arizona law,” Mayes said in a press release.
Calci told PYMNTS in an email statement that Arizona’s accusations are baseless, and the company will fight them in court.
“Four days after Kalci filed a lawsuit in federal court, these charges were filed to circumvent the federal court and shorten the normal judicial process,” the company said. “They are trying to prevent federal courts from evaluating the case on the merits — whether Calci is subject to exclusive federal jurisdiction.”
