Arkansas Attorney General Tim Griffin filed a lawsuit against Kalshi on Wednesday, alleging that the prediction market operates an illegal gambling business. The complaint alleges that Kalshi circumvents state restrictions by allowing users as young as 18 to wager money on sports and entertainment. Griffin seeks a declaration that Kalshi violated Arkansas's deceptive trade practices act and an order requiring restitution. Kalshi has previously maintained that the company's sports contracts are federally regulated financial derivatives rather than gambling. Kalshi did not respond to a request for comment before publication.