Arizona files criminal charges against Kalshi, accusing prediction market of illegal gambling

And they all end up the same way. Make a ton of money, agree to a settlement, continue business as usual.

Just wait until you find out that the culmination of Mr. Beasts amassed wealth is an upcoming pseudo bank / credit card and predatory loan company marketed towards teenagers I wish I was kidding

> There's a lot of businesses pretending to be something... but aren't because it's expensive to actually follow the regulations to be that thing See ride-share companies.

Remember when everyone found out about Robinhood's true nature?

Fintech companies can’t be called a bank unless they have a bank charter and if fintechs want to offer services like deposit accounts or loans, then they need to have a bank partner or become a bank themselves so there still are regulations that need to be followed in that industry. This prediction market bullshit is just a free for all.

Really wish we would regulate away all these scammy socially damaging businesses that were literally invented as digital ways to skirt regulations. Same goes for a lot of 'gig' apps too. All designed to skirt labor laws and pay people under minimum wage because 'they're their own employer!'

I'm an attorney with a very large cannabis practice and what you just described is the intoxicating hemp industry. All my clients get state adult-use licenses and have massive regulatory requirements which are very expensive to comply with. They also get whacked by taxes because of 280E. Despite the fact that intoxicating hemp is very provably illegal (THCa flower is not a thing, that's just weed and USDA regulations make that clear, and no one is actually extracting THC from hemp, they are either creating it in a lab or just getting it from weed, and anything over 0.3% THC, which all distillate is, is federally illegal). But there's no enforcement at the state and federal levels, so they all just break the law and get around the costs to be compliant.

no... they know what they're doing it has nothing to do with "burdensome/expensive regulations" 🙄

So the fintech bank one is wrong. If you call yourself a bank you must have a bank charter, or have a bank providing you the services but they will be legit. Banking regs are pretty clear. Gambling laws however in USA are all over the place. It gets really ugly at state levels too, with California banning dice and r******* requiring a second level to the game (cards determine what your dice roll really is).

Precisely. Well said.

And this is the problem, you get people like this who have zero idea how to use these systems blow it all and then think it's gambling. Y'all are the same reason the SEC interviened and put dumb ass systems in place like the PDT rule cause Y'all suck at 3rd grade math and think hedging is a foreign concept. Hilarious too considering platforms like this site allow for no loss system arbitrage. Literally a way where you make money regardless of outcome and you dumbasses still manage to f*** it up 🤣

My understanding is that it's legally a giant gray area so they are squeezing as much out of it as possible until legislation catches up.

https://fortune.com/2026/02/07/nba-star-giannis-antetokounmpo-gets-in-bed-with-sports-gambling-as-a-kalshi-shareholder/

no, it’s legal insider trading

It was pretty obvious when Pam Bondi wrapped up her press conference in 59 minutes and 59 seconds

They have Donald Trump Jr on payroll as an advisor. They know how to play the game. Wouldn’t count on this during a Trump presidency.

they wont and you know it.

They’ll throw money at Cheeto and the charges will magically go away

I mean if ur gonna commit a crime now is the time. Just gotta get sentenced before the next admin comes in so you can buy a pardon It’s so sad that these are common statements now bc you can literally buy a get out of jail card

Might have trouble getting a payout if you win that one.

Oh were not far away from an athlete getting hurt or killed over a bet.

Mayes is a VERY good Attorney General and has been doing some solid work for the State of Arizona. She’s been in on the Real Page rental price collusion and has brought a suit against the largest foreign corporation farm in Arizona that ended with fines and a contract cancellation. If she’s going this route then I imagine it was the best available at the time.

The real damage to these companies will come from being legally classified as gambling. The. They're subject to regulation. The fines might be small, but all the new rules they now have to follow is what's going to do yhe actual damage.

Well, not for long. Trump is releasing [his own prediction market platform.](https://blockworks.com/news/trump-media-truth-predict) I expect he’ll allow the states to get rid of his competition and Jr will be sitting on a brand new board immediately afterward.