Arkansas AG: Kalshi wagers risk ‘depression’ & other mental harms

Arkansas joins a growing list of states taking legal action against the prediction market platform.

The hit

Arkansas Attorney General Tim Griffin filed a lawsuit against Kalshi on Wednesday, alleging the platform runs illegal gambling in the state, according to The Block. Griffin said wagering money on whether the Razorbacks win or lose “is gambling,” & warned of risks including “excessive wagering, financial losses, depression, and other mental health harms.”

Why it matters

Kalshi says its event contracts are derivatives policed by the CFTC, not state gambling products, a defence it has used in other suits. Arkansas joins a widening split between states claiming gambling jurisdiction & federal regulators insisting prediction markets are theirs alone.

The record

Utah criminal charges	Filed against Kalshi, CEO Tarek Mansour & COO Luana Lopes Lara, last week
Utah civil suit	Also names two Susquehanna trading firms
CFTC counter-litigation	Sued at least 10 states over jurisdiction, according to The Block

What happens next

Watch for Kalshi’s formal response to the Arkansas filing & any ruling in Utah’s criminal case.

Sources: Arkansas sues Kalshi, says its alleged illegal gambling operations cause mental harm · Kalshi, VGW targeted by sweeping Arkansas gambling crackdown

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