LITTLE ROCK, Ark. — Attorney General Tim Griffin has filed lawsuits against two online companies, alleging they are operating in violation of Arkansas gambling laws and the state’s Deceptive Trade Practices Act.
The first lawsuit names KalshiEX LLC and Kalshi Inc., the operators of the prediction market platform Kalshi. According to Griffin, Kalshi allows consumers to wager money on a variety of outcomes, including sporting events, elections, and entertainment competitions, in a way that constitutes illegal gambling under Arkansas law. Griffin stated that the platform’s features, such as self-exclusion tools and deposit limits, are indicative of practices associated with gambling operators and noted that Kalshi promotes resources for gambling addiction.
The AG’s office alleges that Kalshi made its platform accessible to Arkansas residents as young as 18, enabling them to place wagers without obtaining the licensing or oversight required of legitimate gambling operations in the state. The lawsuit also claims the company profited from these wagers while failing to pay the taxes required of lawful gambling providers.
The second lawsuit targets VGW Group, the operator of platforms such as Chumba Casino, LuckyLand Slots, and Global Poker. Griffin asserted that VGW’s business model enables gambling through what he described as a misleading virtual currency system. Players purchase “Gold Coins” with real money, which comes with “Sweeps Coins” as a bonus. According to Griffin, while Gold Coins hold no redeemable value, Sweeps Coins can be used to play games and cash out winnings, creating a system that mirrors traditional gambling.
Griffin compared VGW’s model to now-defunct internet sweepstakes cafes, which courts have previously deemed illegal despite similar attempts to separate virtual currency systems from cash prizes. He emphasized that Arkansas gambling laws apply to all entities facilitating gambling within the state, and his office’s review found VGW’s denial of operating a gambling business to be invalid.
“The rules are clear,” Griffin said in a statement. “If you’re providing a means for Arkansans to gamble money within our state, you must comply with the rules, regulations, and taxes that govern legal gambling.”
Both lawsuits seek restitution for Arkansas consumers, civil penalties, unpaid taxes, and injunctive orders to prevent further violations.
Arkansas law restricts gambling to specific state-licensed operators, and Griffin stressed the importance of enforcing these regulations to protect consumers, especially those vulnerable to financial and mental health risks associated with gambling.
These legal actions represent the latest efforts by Arkansas prosecutors to address alleged unlawful online gambling activities within the state.