KalshiEX LLC v. Johnson

Criminal prosecution enjoined (preliminary injunction)9th Cir.Criminal Prosecution

Last updated August 16, 2026. Snapshot — not legal advice.

Overview

Arizona took the most aggressive posture of any state: Attorney General Kris Mayes filed criminal charges against Kalshi (March 2026). Kalshi sued in federal court to block the prosecution, and after initially declining relief, Judge Michael Liburdi (D. Ariz.) entered a temporary restraining order (mid-April 2026) and then converted it into a preliminary injunction (early May 2026) barring the prosecution on preemption grounds — a notable instance of a federal court halting a state criminal action against a prediction-market platform. The injunction is preliminary, not a final judgment. The CFTC separately named Arizona in its multi-state preemption suit (United States v. State of Arizona), also before Judge Liburdi. (Caption confirmed: KalshiEX LLC v. Johnson, D. Ariz. No. 2:26-cv-01715, filed March 2026, naming AZ Gaming Director Jackie Johnson, AG Kristin Mayes, and the Arizona Department of Gaming; on appeal to the Ninth Circuit as CFTC, et al. v. Johnson, et al.)

Timeline

March 2026

AG Kris Mayes files criminal charges against Kalshi over its event contracts.

April 2026

Judge Liburdi enters a temporary restraining order pausing the prosecution; the CFTC separately sues Arizona.

May 2026

The TRO is converted into a preliminary injunction blocking the prosecution on preemption grounds.

What's next: Preliminary injunction in place; the parallel CFTC civil preemption suit against Arizona proceeds. No final merits ruling.

Parties

Plaintiffs

  • KalshiEX LLC

Defendants

  • Jackie Johnson (Director, Arizona Department of Gaming)
  • Kristin K. Mayes (Arizona Attorney General)
  • Arizona Department of Gaming
  • Douglas Jensen (Chief Law Enforcement Officer, Arizona Dept. of Gaming)
This page is informational, not legal advice. Nearly every entry in this tracker is a preliminary ruling under appeal. Always verify a platform's current, location-specific eligibility directly with the venue before relying on this page.