Little Rock, Ark. – In a decisive move to protect Arkansan consumers, Attorney General Tim Griffin has filed two separate lawsuits this week targeting the owners of prediction‑market platform Kalshi and online gaming operator VGW. The suits claim both companies are operating illegal gambling businesses in Arkansas without the required state licenses, oversight, or tax payments.
Kalshi accused of unlicensed wagering
The complaint against Kalshi alleges that its owners, KalshiEX LLC and Kalshi Inc., violate the Arkansas Deceptive Trade Practices Act by allowing residents – including 18‑year‑olds – to wager real money on a wide range of events, from elections to sports contests. Griffin said the platform’s model is plainly gambling, and that operating such a service without a state license is expressly prohibited.
Kalshi does provide self‑exclusion tools, deposit limits and trading breaks, and it promotes gambling‑addiction resources, including a partnership with the National Council for Problem Gambling. Nonetheless, the Attorney General’s office argues that these safeguards do not excuse the core illegal activity: real‑money wagering on outcomes that are not regulated by Arkansas law.
VGW’s “virtual‑currency” defense rejected
The second lawsuit targets VGW, the company behind online casino‑style sites such as Chumba Casino and LuckyLand Casino. Griffin says VGW misrepresents its business by claiming it does not offer gambling services. VGW argues that users purchase “Gold Coins,” which it calls essentially worthless, and receive “Sweeps Coins” as a bonus. Those Sweeps Coins can be used to play games and later redeemed for cash.
According to the Attorney General, any reasonable person would view this arrangement as gambling. He noted that Arkansas courts have repeatedly rejected the notion that a distinction between a purchased virtual token and a redeemable one removes a service from gambling regulations.
Relief sought and broader implications
Both complaints seek restitution for consumers, civil penalties, back taxes, and injunctive relief to stop the alleged illegal operations. Griffin emphasized that Arkansas regulates gambling to protect consumers from financial loss, mental‑health harms, and addiction, and that companies must comply with licensing, oversight and tax obligations.
The lawsuits arrive amid a growing national conversation about online prediction markets and virtual‑currency gaming platforms. While the federal government has yet to issue comprehensive guidance, state attorneys general like Griffin are asserting their authority to enforce existing gambling statutes and consumer‑protection laws.
What Arkansas residents should know
Arkansas residents who have used Kalshi or VGW should be aware that the Attorney General’s office considers these platforms illegal under state law. Consumers who believe they have been harmed can contact the Attorney General’s Consumer Protection Division for assistance.
Griffin’s office will continue to monitor online gambling operators and pursue enforcement actions when companies evade licensing requirements, undermine consumer safeguards, or fail to pay required taxes.
Copies of the lawsuits are available on the Attorney General’s website for public review.
Original reporting: KATV Little Rock (local) — read the source article.
