the arizona AG is making the same argument ohio did — that event contracts on sports outcomes are functionally sports bets, regardless of what the CFTC says. but the interesting wrinkle here is criminal charges, not just a civil ruling. that's a major escalation. if other states follow with criminal enforcement rather than civil, it doesn't matter if kalshi wins the federal regulatory argument — no one's going to trade on a platform where their state AG might charge them as a customer