TechCrunch Industry News Kalshi’s legal troubles pile up; plus, Mistral bets on ‘build-your-own AI’
Mar 18, 2026
A legal battle heats up as Arizona accuses a prediction market platform of unlicensed gambling and election wagering. Debate over state vs federal authority intensifies. A new AI offering lets companies train models from scratch on their own data, promising tailored multilingual and domain-specific performance.
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Kalshi Faces State Criminal Charges Over Election Betting
- Arizona filed a 20-count complaint accusing Kalshi of running unlicensed gambling and accepting bets on state elections, escalating state-level legal pressure.
- Kalshi argues it's federally regulated by the CFTC and has sued Arizona, Iowa, and Utah to assert federal jurisdiction.
Kalshi Sued Arizona Before Facing Charges
- Kalshi responded to Arizona by suing the state's Department of Gaming in federal court four days before criminal charges were filed.
- The company says the charges are gamesmanship meant to short circuit federal review of its jurisdictional claims.
CFTC Pushes Back Against State Enforcement
- The CFTC signaled support for prediction markets, with chair Michael Selig warning states not to undermine federal jurisdiction.
- That sets up a regulatory showdown between state prosecutors and the federal CFTC over who controls oversight.