Kalshi has been sued by Arizona’s attorney general for operating an illegal gambling business in the state and unlawfully ‌allowing people to place bets on elections. “Kalshi may brand itself as a ‘prediction ⁠market,’ but what it’s actually doing is running an illegal gambling operation ​and taking bets on Arizona elections, both of which violate Arizona law,” the state’s Attorney General Kris Mayes said.

The company defines itself as a prediction markets platform, where users make bets on the outcomes of events ranging from sporting matches to political actions. Kalshi has claimed that it operates under the auspices of the Commodity Futures Trading Commission and shouldn’t be faced with the state-level charges of running unlicensed gambling.

The case follows a similar action against Kalshi filed in Nevada last month. Kalshi also made headlines this year when an employee of popular YouTuber MrBeast was accused of insider trading on the platform.