An Arkansas senator has asked the state’s attorney general to provide an opinion on whether prediction markets such as Kalshi are legally allowed to operate in the state.
Sen. Bryan King told SBC Americas that he sent a letter to AG Tim Griffin on Friday seeking clarity and the state’s chief legal officer’s assessment of whether the likes of Kalshi and Crypto.com should be allowed to offer real-money trading on sports events.
In the letter, which King worked on with the Arkansas Senate’s Chief Legal Counsel Phillip Treat and showed to SBC Americas, noted that predictive markets that allow people to “bet” on future events have become increasingly popular, including on sports.
The letter specifically mentions Kalshi by name numerous times in the letter, noting the various lawsuits in which state regulators or other officials have alleged the company is violating state law by offering an equivalent to sports wagering. King stated that, “so far, Kalshi has succeeded in defending its operation.” On the same day that the letter was sent, the Maryland District Court denied Kalshi’s request for a temporary injunction for several reasons.
Based on the contextual information, source and legal decisions he referenced, King asked Griffin:
- Would a company like Kalshi be operating in violation of Arkansas law if it was not licensed to engage in gaming operations?
- Under Arkansas law, would sports-related event contracts be subject to Arkansas’s tax on fantasy sports games?
- If companies like Kalshi are not required to possess gaming licenses, would they be subject to any other Arkansas regulatory body as a financial exchange?
- If companies like Kalshi can operate under Arkansas law without a gaming license, is there any type of event contract that could not be exchanged under Arkansas law, such as election contracts or contracts related to future tragedies?
The letter, dated Aug. 1, did not specify a timeframe for any form of response from AG Griffin.
Arkansas’ limited gambling market
Arkansas’ gambling set-up allows the state’s licensed casinos to offer legal sports betting at retail sportsbooks inside their resorts and on their own branded apps across the state. None of the U.S. market leaders such as FanDuel or DraftKings operate in Arkansas; the state’s three online sportsbooks are Betly, Bet Saracen and Oaklawn Sports.
The limited sports betting market is regulated and taxed by the Arkansas Racing Commission.
The state has been willing to pursue operators it deems to be unauthorized gambling in the state.
Last year, the Arkansas Department of Finance and Administration (DFA) sent cease-and-desist letters to daily fantasy sports (DFS) giants Underdog and PrizePicks, asserting that their pick’em-style contests equated to betting in violation of Amendment 100 to the Arkansas Constitution. As of August 2025, PrizePicks offers its against-the-house pick’em game in Arkansas, while Underdog offers its peer-to-peer Champions pick’em game.
As well as the likes of Nevada, New Jersey and Maryland, where Kalshi is in court, several other states have taken action against that company and other prediction markets operators by sending C&Ds.
