Arkansas Attorney General Sues Kalshi and VGW

Arkansas Attorney General Tim Griffin, in lawsuits filed on November 4, claims that Kalshi and Virtual Gaming Worlds (VGW) offered illegal gambling services in the state without obtaining the required licenses. Both companies are reportedly accused of misleading consumers about whether their products are legal. The Kalshi lawsuit was filed in the Independence County Circuit Court, while the VGW lawsuit was filed in the White County Circuit Court.

Griffin argues that Kalshi's event contracts are gambling products rather than financial forecasting tools. He notes that features such as self-exclusion options, deposit limits and problem gambling resources are typically found at gambling operators. He also points out that Kalshi allows users aged 18 to trade, while Arkansas requires players to be at least 21 to take part in casino games and sports betting.

The VGW lawsuit targets sweepstakes platforms including Chumba Casino, LuckyLand Casino, LuckyLand Slots and Global Poker. Customers buy Gold Coins with real money and receive Sweeps Coins as a bonus. These coins can be used to play casino-style games, and winnings may be redeemable for cash. Griffin says that after the state's review, it determined the platforms qualify as gambling under Arkansas law.

VGW describes itself as an interactive entertainment company and denies operating a gambling business. In September, following a cease-and-desist order concerning its sweepstakes casino activities, the company agreed to pay $8 million to resolve its lawsuit with the New York Attorney General's Office. The payment is reported to consist of disgorgement of profits, penalties and costs.