Kalshi CEO Tarek Mansour has denounced criminal charges filed by Arizona’s Attorney General as a “total overstep,” arguing the case is a jurisdictional dispute with federal regulators. The company contends the U.S. Commodity Futures Trading Commission (CFTC) holds exclusive oversight, a position supported by former CFTC Chair Michael Selig, who called the prosecution “inappropriate.” The charges come as prediction markets face increasing legal scrutiny across multiple states.
Tarek Mansour, co-founder and CEO of prediction markets platform Kalshi, has pushed back against criminal charges filed by Arizona authorities this week. Mansour claimed the charges were a “total overstep” and “not about gambling.”
Arizona Attorney General Kris Mayes announced charges against the companies behind Kalshi, alleging they operated an illegal gambling business without a license. Mansour argued Mayes was attempting to “subvert the judicial process” by filing charges before a court decision in Kalshi’s own lawsuit against the state.
While Kalshi faces similar cases in other states, Arizona was among the first to file criminal charges. This state-level action coincides with congressional scrutiny of prediction markets like Polymarket over bets on U.S. military actions.
Kalshi has argued in court that the U.S. Commodity Futures Trading Commission (CFTC) has exclusive jurisdiction to oversee the company. Former CFTC Chair Michael Selig stated the charges represent a “jurisdictional dispute and entirely inappropriate as a criminal prosecution.”
An Ohio judge recently denied a preliminary injunction based on Kalshi’s CFTC jurisdictional argument. However, a Tennessee court blocked state authorities from enforcing gambling laws against the platform in February.
