Arkansas Attorney General Tim Griffin filed separate lawsuits on 4 November against prediction-market platform Kalshi and sweepstakes casino operator VGW. Both cases allege violations of the Arkansas Deceptive Trade Practices Act and seek to stop activity the state says amounts to unlicensed gambling.
The Kalshi case challenges real-money event contracts, including sports outcomes. The VGW complaint targets the dual-currency model used by brands including Chumba Casino, LuckyLand Casino, LuckyLand Slots and Global Poker. The state argues that the use of separate virtual currencies does not remove the gambling characteristics of the products.
Relief sought
The attorney general is seeking injunctive relief, restitution, penalties and taxes. The cases are separate proceedings and no court has ruled on the allegations. The claims should therefore be treated as the state’s legal position, not established findings against either company.
The filings add another US state-level challenge for prediction markets and sweepstakes casinos. Operators and affiliates working with these models will need to monitor the litigation and assess whether their products, promotions and traffic arrangements create exposure under Arkansas law.
Official releases: Kalshi case and VGW case.