What happened
Arizona Attorney General Kris Mayes (D) yesterday filed criminal charges against Kalshi, accusing the prediction marketplace of “running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law.” The 20-count indictment alleges that Kalshi illegally accepted bets on sporting outcomes, political events and election results, among other “unlicensed wagering.” 

Who said what
“Arizona will not be bullied into letting any company place itself above state law,” Mayes said in a statement. The criminal charges, the first filed by a state against Kalshi, mark “a new front in a high-stakes legal battle over whether prediction markets should be subject to the same rules as gambling companies,” The Associated Press said. President Donald Trump, whose son Don Jr. is a “strategic adviser” for Kalshi, has thrown his “support behind the multibillion-dollar prediction market industry.” Several other states have sued Kalshi and its rival, Polymarket.

The Arizona lawsuit “comes less than a week” after Kalshi filed a preemptive suit, asking a federal judge to rule that its wagers are “not gambling but instead something more akin to trading futures on commodities,” the Arizona Capitol Times said. The company argues its “contracts” can only be regulated by the federal Commodity Futures Trading Commission, “out of reach of state authorities.” CFTC chair Michael Selig appeared to agree, calling the Arizona suit a “jurisdictional dispute” that is “entirely inappropriate as a criminal prosecution.”

What next?
The outcome of the legal actions in Arizona and “at least nine other states” could have “sweeping implications for how sports betting — which makes up roughly 90% of Kalshi’s trading volume — is regulated in the U.S.,” the AP said. Legal experts predict the dispute over prediction markets “has a good chance of making its way to the Supreme Court,” Axios said.

What happened
Venezuela beat Team USA 3-2 last night to win its first World Baseball Classic title, with Eugenio Suárez’s ninth-inning tiebreaking double topping Bryce Harper’s eighth-inning two-run home run. The championship game, in Miami’s loanDepot Park, capped the sixth edition of the 20-nation event, which is held every three years. As the heavily Latino crowd cheered Venezuela’s win in Miami, thousands of people also celebrated in central Caracas. 

Who said what
“Thirty million people around the world were watching this game today,” Venezuela captain Salvador Perez said after the game. “The World Series, as you all know, is one of the most important championships in the major leagues, but when you fight for your country, that goes beyond.” Team USA captain Aaron Judge said his teammates “put on this uniform, signed up to go out there and get a gold medal,” and “we just fell short.”

This year’s Team USA was “the greatest collection of American baseball players ever assembled for the World Baseball Classic,” bringing together “All-Stars and MVPs and future Hall of Famers,” said The Athletic. But “despite the gaudy statistics and lucrative contracts,” the team “lacked cohesion and performed as less than the sum of its parts.” Venezuela was overshadowed ahead of the tournament by the U.S., Japan and the Dominican Republic, the only other Latin American team to win the WBC, in 2013. But Venezuela’s “success was not that surprising,” The Associated Press said, given that 63 Venezuelan-born players “appeared on Major League Baseball opening-day rosters last year.”

What next?
Venezuela’s acting president, Delcy Rodríguez, declared today a National Day of Joy, giving everyone but essential workers the day off. Team USA — which has only won one WBC championship, in 2017 — will get its next shot at the title in 2029.