The betting site Kalshi emerged as a dominant sports betting platform during the World Cup. But the company avoids billions of dollars in taxes by insisting it is not a sports gambling operator.
Gambling companies have cited recent federal charges as proof that illegal activity is being rooted out. The companies’ critics say the cases do not address widespread illicit activity.
A former reality TV contestant turned candidate in Virginia and two U.S. House hopefuls in Texas and Minnesota have been banned from the prediction market for five years.
The suits are the most ambitious effort to date that the Trump administration has gone to try to override state laws and set the rules for the fast-growing and increasingly divisive betting industry.
“Arizona will not be bullied into letting any company place itself above state law,” said Democratic Attorney General Kris Mayes.
Apps that let people wager on current events have experienced explosive growth in Trump's second term. But one of the leading markets is tied up in lawsuits that cloud the industry's future.