Arkansas AG Sues Kalshi and VGW Over Alleged Illegal Gambling

Arkansas Attorney General Tim Griffin on Wednesday sued prediction-market operator Kalshi and online gaming company VGW, accusing each of offering illegal gambling to Arkansas residents in violation of the state’s Deceptive Trade Practices Act.

Kalshi case in Independence County

Griffin filed against KalshiEX LLC and Kalshi Inc. in Independence County, according to his office and contemporaneous coverage by the Arkansas Advocate, RG and the Northwest Arkansas Democrat-Gazette. In a statement, he said Kalshi lets consumers wager money on elections, sports and entertainment events without the licenses, oversight, restrictions and taxes required of lawful gambling operators in Arkansas, and that the platform is open to people as young as 18.

“It doesn’t take a genius to understand that wagering money on whether the Razorbacks win or lose is gambling,” Griffin said. He pointed to Kalshi’s self-exclusion tools, deposit limits and problem-gambling resources as evidence the company treats its product like gambling despite calling it a prediction market. The complaint, as summarized by the Advocate, labels Kalshi a “pocket-sized bookie” and seeks a finding that the firm violated the Deceptive Trade Practices Act, plus restitution, penalties, taxes and injunctive relief.

A Kalshi spokesperson did not immediately respond to the Advocate’s request for comment, the outlet reported. Arkansas already allows sports betting through licensed casinos. Other states, including Utah, have also sued Kalshi over event contracts, RG noted.

VGW sweepstakes casinos in White County

A separate suit against VGW was filed in White County. Griffin’s office said VGW runs Chumba Casino, LuckyLand Casino, LuckyLand Slots and Global Poker. Players buy “Gold Coins” with real money and receive “Sweeps Coins” as a bonus that can be used on casino-style games and redeemed for cash, the attorney general said — a model he compared to internet sweepstakes cafes that courts have treated as gambling.

“Any reasonable person would call that gambling,” Griffin said. The Advocate reported that the complaint seeks civil penalties and consumer restitution, and that VGW earlier this year paid $8 million to New York regulators after a cease-and-desist letter. VGW did not immediately respond to the Advocate.

Developing: Neither company had filed a public court response in the reporting reviewed for this article, and no hearing dates were set in the sources used here.

Sources: Arkansas Attorney General (Kalshi), Arkansas Attorney General (VGW), RG, Northwest Arkansas Democrat-Gazette, Arkansas Advocate.