By Jeffrey A. Newman Esq.
Arizona has filed criminal charges against the parent company of Kalshi, the startup prediction platform. The charges include 20 counts of illegal betting and wagering. Arizona’s Attorney General said Kalshi had accepted bets from residents on sports, elections, and events in violation of state law.
Kalshi and its competitor, Polymarket, have expanded over the past few years, and, according to the Wall Street Journal, the two companies were in discussions with investors about raising capital to reach a $20 billion valuation. Recently, the two companies have come under scrutiny for allowing bets on the U.S. striking Iran and the ouster of the country’s Supreme Leader. In recent months, Kalshi has sued a handful of states, including Arizona, Iowa, and Utah, to stop what it believed were impending bans. The company said it believed its event contracts were under federal, not state, jurisdiction. Regardless of the decision in Arizona, the two companies expect that the cases could reach the U.S. Supreme Court to define what is allowable and what isn’t.
Jeffrey Newman, JD, MBA, is a whistleblower lawyer whose firm represents healthcare fraud whistleblowers and whistleblowers reporting violations of export controls, tariff evasion, money laundering, and other WB cases. Mr. Newman and his staff also represent many physician whistleblowers in healthcare fraud cases. Whistleblower laws in the U.S. allow individuals with information about export control violations or tariff fraud to report it under the False Claims Act. The Firm’s website is www.JeffNewmanLaw.com. Attorney Newman can be reached at Jeff@Jeffnewmanlaw.com or at 978-880-4758. For other blogs see: http://JeffNewmanLaw.com
