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Checked Oct. 21, 2026

AZ ยท Checked Oct. 21, 2026

Prediction market law in Arizona

In litigation

A federal injunction bars Arizona from prosecuting Kalshi; Arizona has asked the Ninth Circuit to lift it for sports contracts.

Arizona's Department of Gaming sent Kalshi a cease-and-desist letter in May 2025, and Attorney General Kris Mayes filed 20 misdemeanor counts against two Kalshi entities in March 2026. Judge Michael Liburdi turned down Kalshi's own request for an injunction in April 2026, but after the CFTC and the Justice Department sued, he issued a preliminary injunction on May 5, 2026, barring Arizona from enforcing its gambling and election-wagering laws against CFTC-registered exchanges; the criminal case is on hold. Citing the Ninth Circuit's August 2026 ruling for Nevada, Arizona asked that court in September to vacate the injunction as to sports contracts. The CFTC has said the injunction's reasoning cannot stand after the Nevada ruling but asked the court to wait for a decision on Kalshi's request for en banc rehearing; no ruling had been reported as of October 21, 2026.

Timeline of state actions

  1. Other development, Kalshi

    Arizona moved in the Ninth Circuit to summarily vacate the injunction as to sports-event contracts and remand the election-contract issues; no ruling had been reported.

    Source: DeFi Rate legal tracker (snapshot)

  2. Other development, Kalshi

    After the Ninth Circuit's Aug. 28 ruling for Nevada, Arizona told the court it would seek summary vacatur of the injunction as to sports contracts and a remand on election contracts.

    Source: Arizona status report, 9th Cir. No. 26-4281

  3. Court order, Kalshi, Crypto.com

    The Ninth Circuit stayed Arizona's appeal of the injunction (No. 26-4281), in which Kalshi and Crypto.com's exchange (NADEX) are appellees or intervenors, until it decided the related Nevada appeals.

    Source: Justia docket, 9th Cir. No. 26-4281

  4. Other development, Kalshi

    The Arizona attorney general joined a 37-state amicus brief in the Sixth Circuit (KalshiEX LLC v. Schuler) supporting Ohio's authority to apply its gaming laws to Kalshi.

    Source: California Attorney General (coalition press release)

  5. Court order, Kalshi

    The court granted the federal government a preliminary injunction barring Arizona's criminal and civil enforcement of its gambling and election-betting laws against event contracts on CFTC-registered exchanges.

    Source: Arizona status report, 9th Cir. No. 26-4281 (Sept. 4, 2026)

  6. Other development

    The Arizona attorney general was one of 41 attorneys general on a comment letter asking the CFTC to confirm in rulemaking that it lacks jurisdiction over sports-related event contracts.

    Source: Colorado Attorney General (coalition press release)

  7. Court order, Kalshi

    Judge Michael Liburdi issued a temporary restraining order halting Arizona's enforcement against Kalshi; the scheduled arraignment was called off.

    Source: Courthouse News (AP)

  8. Court order, Kalshi

    Judge Liburdi denied Kalshi's own motion for a TRO and preliminary injunction, relying mainly on the Anti-Injunction Act; Kalshi appealed in May (9th Cir. No. 26-2978), and that appeal is stayed.

    Source: InGame

  9. Other development, Kalshi

    The United States and the CFTC sued Arizona in federal court, arguing the Commodity Exchange Act preempts state enforcement against CFTC-registered exchanges.

    Source: Action Network prediction market lawsuit tracker

  10. Criminal charges, Kalshi

    The attorney general filed a 20-count misdemeanor criminal information in Maricopa County Superior Court against KalshiEX LLC and Kalshi Trading LLC, covering sports and election contracts.

    Source: SBC Americas

  11. Operator lawsuit, Kalshi

    Kalshi sued Arizona gaming officials and the attorney general in federal court (KalshiEX LLC v. Johnson), arguing federal law preempts state gambling law.

    Source: SBC Americas

  12. Cease-and-desist, Polymarket

    Arizona's gaming regulator sent Polymarket a cease-and-desist letter (month only reported).

    Source: WSN prediction markets legal tracker

  13. Other development, Underdog

    The Department of Gaming notified Underdog that it intended to revoke its fantasy sports contest operator license.

    Source: Arizona Department of Gaming notice (via Mick Bransfield tracker)

  14. Regulator guidance

    The Department of Gaming sent a notice to its licensed operators about involvement with prediction markets.

    Source: Arizona Department of Gaming notice (via Mick Bransfield tracker)

  15. Cease-and-desist, Kalshi

    The Arizona Department of Gaming sent KalshiEX and its CEO a cease-and-desist letter saying Kalshi was accepting unlawful wagers.

    Source: Kalshi/CFTC motion for TRO and PI, D. Ariz. CV-26-01715 (ECF 49)

Laws and bills

No enacted laws or pending bills specific to prediction markets found.

Court cases

Sources

  1. Kalshi/CFTC motion for TRO and PI, D. Ariz. CV-26-01715 (ECF 49)
  2. Arizona Department of Gaming notice (via Mick Bransfield tracker)
  3. WSN prediction markets legal tracker
  4. Arizona Department of Gaming notice (via Mick Bransfield tracker)
  5. SBC Americas
  6. Action Network prediction market lawsuit tracker
  7. InGame
  8. Courthouse News (AP)
  9. Colorado Attorney General (coalition press release)
  10. Arizona status report, 9th Cir. No. 26-4281 (Sept. 4, 2026)
  11. California Attorney General (coalition press release)
  12. Justia docket, 9th Cir. No. 26-4281
  13. DeFi Rate legal tracker (snapshot)
  14. Sports betting status