Federal Judge Halts Arizona's Arraignment of Kalshi Over Prediction Market Contracts

A federal judge has issued a temporary restraining order preventing Arizona from proceeding with the arraignment of Kalshi on 20 criminal charges related to its prediction market contracts. According to NS3.AI, District Judge Michael Liburdi ruled that Arizona cannot conduct Kalshi's arraignment scheduled for Monday, April 13. The order prohibits Arizona from applying its gambling laws to contracts listed on designated contract markets regulated by the Commodity Futures Trading Commission (CFTC). The CFTC, which has filed a lawsuit against Arizona and two other states, contends that these event contracts are considered swaps under federal oversight.