# Arkansas Sues Kalshi Over Gambling Enforcement

> Arkansas sues Kalshi after federal courts let state gambling laws stand.
- Title: Arkansas Sues Kalshi Over Gambling Enforcement · Pymnts
- Summary: Arkansas sues Kalshi after federal courts let state gambling laws stand. Arkansas sued Kalshi for illegal gambling after federal courts upheld state…
- Keywords: arkansas, kalshi, federal courts, gambling enforcement, state laws, prediction markets, lawsuits, Pymnts
- Source: Pymnts — https://pymnts.com/legal/2026/arkansas-sues-kalshi-federal-courts-leave-state-gambling-enforcement
- Author: PYMNTS
- Published: 2026-11-06T18:26:39+00:00
- Read time: 1 min
- Topics: arkansas, kalshi, federal courts, gambling enforcement, state laws, prediction markets, lawsuits, business, finance
## Arkansas sues Kalshi
Arkansas Attorney General Tim Griffin sued Kalshi Wednesday (Nov. 4) for illegal gambling to residents under state rules.

> arkansas law is concerned with substance not semantics
## Federal courts uphold state laws
Federal appeals courts left Connecticut, Nevada and New York free to enforce gambling laws against sports event contracts.
## Kalshi admits customers under 21
Kalshi allows customers as young as 18 while Arkansas requires users to be at least 21 to open electronic wagering accounts.
## Griffin seeks restitution
Griffin alleged violations of Arkansas’ Deceptive Trade Practices Act and seeks restitution, penalties, unpaid taxes and an injunction.
## Kalshi calls allegations baseless
Kalshi called the allegations baseless and said Congress created a single federal regulator for nationwide rules.
## 2nd Circuit denies injunction
The 2nd Circuit denied requests from Kalshi and Coinbase to block state enforcement while appeals proceed.
## 9th Circuit declines rehearing
The 9th Circuit declined to rehear its August decision allowing Nevada to enforce gambling laws against Kalshi’s sports contracts.
## Key takeaway

Arkansas sued Kalshi for illegal gambling after federal courts upheld state enforcement of gambling laws.