Arkansas Attorney General Tim Griffin filed lawsuits Wednesday against online platforms Kalshi and VGW, alleging both are operating illegal gambling operations in violation of state law.
The complaint against Kalshi was filed in Independence County Circuit Court and accuses the company—an online prediction market—of functioning as a "pocket-sized bookie." According to the lawsuit, Kalshi allows users, including individuals as young as 18, to place real-money wagers on the outcomes of sporting and entertainment events without regulatory oversight.
“It doesn’t take a genius to understand that wagering money on whether the Razorbacks win or lose is gambling,” Griffin said in a statement. “And gambling on an unregulated platform is squarely prohibited by Arkansas law.”
Griffin’s office argued that Kalshi’s practices violate state gambling statutes and consumer protection laws designed to shield Arkansans from potential financial and ethical harms. The lawsuit asks the court to declare the company in breach of Arkansas’s deceptive trade practices act and to order restitution for affected consumers. Kalshi had not issued a response to the lawsuit as of late Wednesday.
In a separate case filed in White County Circuit Court, Griffin also targeted VGW, an Australia-based company that operates online gaming platforms including Chumba Casino, LuckyLand Casino, LuckyLand Slots, and Global Poker. According to the suit, VGW uses virtual currency known as "Sweeps Coins," which consumers can purchase, use for betting, and redeem for cash payouts. The lawsuit claims this model represents real-money gambling disguised as sweepstakes.
The filing alleges VGW accepted money from Arkansans to enable gambling and provided cash and other prizes as winnings, which Griffin argued violates state gambling laws. The lawsuit seeks civil penalties and restitution for consumers. VGW did not immediately respond to requests for comment.
VGW has previously faced scrutiny from other states. Earlier this year, the company paid $8 million to New York state regulators following a cease-and-desist letter from that attorney general’s office, according to the lawsuit.
Both cases are part of a broader effort to enforce gambling regulations in Arkansas, where gaming is only permitted through licensed casinos or through regulated methods such as the state lottery and licensed sports betting platforms. The state’s actions aim to address unregulated operations that could create risks for consumers.
The lawsuits are ongoing.