Arkansas Attorney General Calls Prediction Markets Unlawful Gambling

The Attorney General emphasized that simply calling a company’s operations a “prediction market” does not shield them from gambling regulationsImage Source: Shutterstock.com

Arkansas Attorney General Tim Griffinhas decided that online prediction markets without a state gaming license are breaking Arkansas law. He gave this official opinion on October 23, 2025, answering State Senator Bryan King‘s question about the legality of companies like Kalshi, which allow users to bet on future events.

Arkansas AG: Platforms Like Kalshi Must Hold Gaming Licenses to Operate Legally

The Arkansas Attorney General’s officedetermined that platforms, letting people bet on outcomes like elections, sports events, or even natural disasters, fall under the state’s wide-ranging gambling definition. The Attorney Generalstressed that labeling this activity a “prediction market” does not make it exempt from gambling laws. His view stated that any setup where money is wagered on the chance of a future event happening meets Arkansas’ legal criteria for gambling, based on past rulings.

He also noted that sending or getting sports data to gamble breaks state law, hinting that platforms offering sports-based contracts could be in double trouble. This means companies like Kalshiwould need a proper gaming licenseto work in Arkansas. The opinion states that the work of such companies counts as gambling or gaming and needs a license.

Arkansas AG Draws Line Between Fantasy Sports and Prediction Markets in Landmark Opinion

The Attorney General’s viewshows that prediction market operators cannot claim the same tax benefits as fantasy sports companies. Arkansaslaw has a special tax and exemption setup for paid fantasy sports games, but Griffinmade it clear that prediction markets do not fit this category. He explained that fantasy sports results depend on total player statistics, not single-game outcomes or team performance — standards that prediction markets do not meet.

This is the first official attorney general opinionon prediction markets in Arkansas,putting the state on the list of places looking into event-based trading. Other states, like Ohio and New Jersey, have ngaken stronger action by ordering these platforms to stop or suing them.

Sen. Kingplans to look at possible new laws saying prediction markets should face the same rules as regular gambling businesses.Griffin, who earlier this year joined many other state attorneys general asking federal officials to crack down on illegal online gambling, sees this as a matter of fairness and consistency in state rules. His view highlights a growing national debate: Are prediction markets new financial tools or just another type of unlicensed betting?