Arkansas Accuses Kalshi of Hiding Risks and Allowing Underage Users

Arkansas has accused Kalshi of concealing trading risks and allowing users younger than 21 to use its products, bringing a state legal challenge against the prediction market platform. The allegations focus on both who could access Kalshi’s products and what the company told customers about trading there.

Arkansas alleges Kalshi knew professional traders and insider trading could pose risks on its platform. The state says Kalshi nevertheless presented the service to users as legal and safe without disclosing those risks.

Arkansas is seeking taxes it says Kalshi failed to pay during its time operating in the state. The state is also seeking civil penalties under Arkansas law, with fines of up to $10,000 for each violation.

That places risk disclosures and access by users under 21 at the center of the case. The tax demand and per-violation penalties add a financial component to Arkansas’ challenge of Kalshi’s products. The allegations concern both Kalshi’s risk disclosures and the state’s claim that users under 21 could access its products.