Arkansas Attorney General Tim Griffin sued prediction market platform Kalshi on Wednesday, alleging it operates an illegal gambling platform. The lawsuit says Kalshi allows users aged 18 and older to wager on sports and entertainment outcomes, circumventing Arkansas restrictions on casinos and sports betting. Griffin is seeking a ruling that Kalshi violated the state’s Deceptive Trade Practices Act and an order requiring compensation. Kalshi, which is regulated by the U.S. Commodity Futures Trading Commission, has argued that its sports contracts are financial derivatives rather than gambling. The case adds Arkansas to legal challenges brought by Utah and several other U.S. states against prediction markets.