Arkansas sues Kalshi, alleging it offered unlicensed sports betting contracts to 18-year-old users

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Arkansas sued Kalshi, alleging that it operated an unlicensed sports betting business, and seeking the return of funds, payment of civil penalties, payment of back taxes, and an injunction. The state said Kalshi allowed 18-year-old users to trade, while Arkansas requires casino and sports betting participants to be at least 21 years old; Kalshi argues that its sports contracts are swaps regulated by the CFTC rather than gambling. The case comes as the CFTC is negotiating with multiple states over its authority to regulate prediction markets, with the relevant appellate courts yet to reach a consensus.