Attorney General Tim Griffin filed a lawsuit on Wednesday against KalshiEX LLC and Kalshi Inc., accusing the companies of violating the Arkansas Deceptive Trade Practices Act. Griffin claims that Kalshi allows customers, aged 18 to stake money on sports and entertainment outcomes without meeting Arkansas gambling requirements.

“It doesn’t take a genius to understand that wagering money on whether the Razorbacks win or lose is gambling,” Griffin said. The complaint describes Kalshi as a ‘pocket-sized bookie,’ arguing that its prediction-market branding does not change the nature of its activities.

Arkansas is seeking restitution for consumers, financial penalties, taxes and an injunction. These remedies remain unproven.