Arizona Attorney General Kris Mayes filed 20 criminal counts against Kalshi, accusing the prediction market platform of operating an illegal gambling business and offering election wagering in the state. Kalshi co-founder Tarek Mansour called the case a "total overstep" and argued Arizona is targeting a federally regulated exchange rather than addressing gambling law on the merits. CFTC Chair Mike Selig described the matter as a jurisdictional dispute and said criminal prosecution of a registered exchange was inappropriate. The case expands a broader national conflict between states and federally regulated prediction markets, with Arizona going beyond cease-and-desist orders and civil actions used elsewhere by pursuing criminal charges.