Judge bars Arizona from regulating prediction market operators and pauses prosecution of Kalshi

A federal judge on Friday temporarily barred Arizona from enforcing its gambling laws against predictive market operators in a lawsuit filed by the Trump administration after state prosecutors filed criminal charges that alleged Kalshi is running an illegal gambling operation there.

The ruling by U.S. District Judge Michael Liburdi also halts Arizona’s criminal case against Kalshi, which was scheduled for an arraignment hearing Monday. After the ruling, a prosecutor said the hearing won't be held on Monday.

Liburdi said he would explain his reason for the ruling in an order, which was expected to be released Friday evening.