PHOENIX (AP) — On Friday, a federal judge issued a temporary order preventing Arizona from applying its gambling regulations to prediction market companies, following legal action by the Trump administration after state officials brought criminal charges claiming Kalshi operates an unlawful gambling business.
U.S. District Judge Michael Liburdi’s decision also suspends Arizona’s criminal proceedings against Kalshi, which had been set for an arraignment on Monday. Following the judge’s ruling, a state prosecutor confirmed the Monday hearing has been canceled.
Judge Liburdi indicated he would provide detailed reasoning for his decision in a written order expected to be issued Friday evening.
The federal Commodity Futures Trading Commission initiated legal action against Arizona following cease-and-desist orders issued to Kalshi by state gambling authorities and subsequent criminal charges filed against the prediction market company. The commission contended that Arizona was overstepping federal jurisdiction over national swaps market regulation.
