Arizona’s attorney general on Tuesday filed criminal charges against Kalshi, alleging the prediction market platform is engaging in illegal gambling practices and election wagering.

The complaint, filed in Maricopa County, Arizona, includes 20 separate counts against Kalshi, claiming the company accepted bets from Arizona residents in violation of state law. The bets in question focused on events including sporting contests, individual player performance, legislation and state and federal elections, according to a statement issued by Arizona Attorney General Kris Mayes’ office. 

“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,” Mayes said in the statement.

Four of the counts against Kalshi are on election wagering, while the remaining 16 are related to betting and wagering.

Kalshi called the criminal charges “paper thin” and said states don’t have the authority to regulate a national financial exchange.

“As other courts have recognized and the [Commodity Futures Trading Commission] affirms, Kalshi is subject to federal jurisdiction,” a spokesperson told CBS News in an email. “It’s different from what sportsbooks and casinos offer their customers, and it should not be overseen by a patchwork of inconsistent state laws.” 

— This is a developing story and will be updated