"The Younger abstention doctrine provides that federal courts are not to interfere with pending state criminal proceedings. The doctrine is rarely invoked in regulatory disputes, but it can block federal courts from intervening when state criminal prosecutions are already underway. If the judge applies it here, the federal case could effectively stall while the state case proceeds."
"Arizona Attorney General Kris Mayes has accused KalshiEx LLC and Kalshi Trading LLC of conducting an unlawful wagering business inside the state. Kalshi may brand itself as a 'prediction market,' but what it's actually doing is illegal gambling according to the allegations."
U.S. District Judge Michael T. Liburdi denied Kalshi's request for a temporary restraining order against Arizona authorities pursuing criminal charges. The court scheduled an April 3, 2026 hearing to consider Kalshi's preliminary injunction request. The judge raised the Younger abstention doctrine, which prevents federal courts from interfering with pending state criminal proceedings. This doctrine is rarely used in regulatory disputes but could halt the federal case while state prosecution continues. Arizona's criminal case against Kalshi is advancing, with the company's first appearance scheduled for April 13, 2026. Arizona Attorney General Kris Mayes alleges that Kalshi operates an unlawful wagering business, characterizing the prediction market platform as illegal gambling.
Read at ReadWrite
Unable to calculate read time
Collection
[
|
...
]