Director of the Arizona Department of Gaming Jackie Johnson has criticized the Commodity Futures Trading Commission for its handling of prediction markets offered by companies such as Kalshi.
In a letter addressed to Commodity Futures Trading Commission Acting Chairperson Caroline Pham on Monday, Johnson said there is little difference between buying a contract on a sports event with Kalshi and placing a bet through a sportsbook.
“Whether a contract will pay its buyer depends on whether that person correctly predicts the result of the event and buys a contract for the correct outcome. This conduct amounts to illegal gambling in Arizona, the promotion of which is a felony,” she stated in the letter.
