A federal court in Arizona granted the Commodity Futures Trading Commission’s (CFTC) request for a temporary restraining order against state officials antagonized by rising prediction platforms.
CFTC Chairman Mike Selig posted online that he “welcomed” the court’s decision to block further action from Arizona’s regulators.
Key Takeaways
- The CFTC contacted the state after Kalshi was denied a preliminary injunction.
- Arizona is the first state to have pursued criminal charges against Kalshi.
- Kalshi believes it should be allowed to operate in full as long as it is compliant with federal regulations.
It was announced on Friday that the United States District Court for the District of Arizona granted the temporary restraining order, prohibiting the state from pursuing criminal charges against CFTC-regulated platforms.
Arizona’s decision to weaponize state criminal law against companies that comply with federal law sets a dangerous precedent. I welcome the Court’s order today that sends a clear message: these cases raise important issues that must be resolved before states seek to enforce state…
— Mike Selig (@ChairmanSelig) April 10, 2026
The story began in mid-March, when prediction leader Kalshi was slapped with 20 counts of criminal activity by Attorney General Kris Mayes. Kalshi applied for a temporary block against the state, although it was denied by U.S. District Judge Michael Liburdi.
Kalshi then attempted to receive a preliminary injunction to prevent the state from attacking the platform, which state officials claimed offered illegal gambling services to consumers. Judge Liburdi also denied that request, stating that it would be “inappropriate” without Kalshi proving that future enforcement was imminent.
The CFTC—which is in charge of regulating prediction markets—then requested that the Arizona court issue a temporary restraining order preventing the attorney general and gaming enforcement bodies from pursuing criminal charges against prediction platforms such as Kalshi. The granting of that request marked the first key victory in Arizona for Kalshi and similar outlets.
“The attorney general’s office disagrees with the court’s ruling and we will evaluate our next steps,” said Richie Taylor, a spokesperson for the Arizona Attorney General’s Office.
An arraignment previously scheduled for Monday was canceled.
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Escalating the feud
A key difference between prediction platforms and legal sportsbooks is how they are regulated. The CFTC oversees prediction apps from the federal level, whereas state bodies license and keep track of local sportsbooks.
State gaming officials have opined that prediction platforms should be held to the same local standards as sportsbooks. Those platforms have remained adamant that they should have full autonomy over their operations, so long as they are compliant with their federal standards.
“The CFTC appreciates the court’s careful consideration of these important legal questions and the court’s decision to preserve the status quo,” Selig said in a statement released on Friday. “Arizona’s decision to weaponize state criminal law against companies that comply with federal law sets a dangerous precedent, and the court’s order today sends a clear message that intimidation is not an acceptable tactic to circumvent federal law.”
Arizona is only one of numerous states that have pursued legal action against Kalshi. However, it is the first to file criminal charges against the company, which its CEO, Tarek Mansour, called “baseless” and an “overstep.”
This also isn’t the first time that Kalshi received a temporary restraining order against state officials. Last April, it was granted a block against the New Jersey Division of Gaming Enforcement, which had issued cease-and-desist orders to Kalshi and fellow prediction outlet Robinhood.
Kalshi back in Arizona
In more prediction market news, CFTC’s announcement of the temporary restraining order noted that it had also filed complaints against Connecticut and Illinois last week.
According to the statement, the CFTC aimed to maintain its "exclusive authority” to oversee event contracts and prevent states from enforcing state laws preempted by the CFTC’s federal regulation.
The latest updates should pave the way for Kalshi to continue operating in Arizona in full.
