Arizona Attorney General Kris Mayes has filed 20 misdemeanor charges against KalshiEx LLC and Kalshi Trading LLC, marking the first criminal action by a US state against a prediction market operator. The charges, filed in Maricopa County Court, accuse Kalshi of operating an illegal gambling enterprise by offering bets on election outcomes, including the 2028 presidential race and the 2026 Arizona governor's race. Additional charges relate to unauthorized sports betting and the passage of the SAVE Act, with potential fines totaling $400,000. Kalshi had preemptively filed civil lawsuits against Arizona, Utah, and Iowa to block state actions, but Arizona proceeded with the charges. The Commodity Futures Trading Commission (CFTC) supports Kalshi, arguing that its event contracts are federally regulated as "swaps" under the Commodity Exchange Act. Despite CFTC backing, Arizona's move highlights ongoing jurisdictional disputes between state and federal authorities over prediction markets.