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Kalshi’s legal troubles pile up, as Arizona files first ever criminal charges over ‘illegal gambling business’

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Arizona Attorney General Kris Mayes has filed criminal charges against prediction market platform Kalshi, for allegedly operating an illegal gambling business in the state without a license and for election wagering.

The 20-count complaint, filed in Maricopa County court on Tuesday, accuses the company of engaging in unlicensed gambling activities, claiming that the site “accepted bets from Arizona residents on a wide range of events,” including state elections, a practice that is illegal in Arizona. The complaint charged Kalshi with four counts of election wagering for accepting bets from Arizona residents on the 2028 presidential race, the 2026 Arizona gubernatorial race, the 2026 Arizona Republican gubernatorial primary, and the 2026 Arizona Secretary of State race.

This is the first time a state has pursued such charges against the company, according to the Arizona Mirror, and marks a significant escalation in the battle between states and the prediction market industry.

“Kalshi may brand itself as a ‘prediction market,’ but what it’s actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law,” Attorney General Mayes said in a statement. “No company gets to decide for itself which laws to follow.”

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It’s worth noting that the charges are technically misdemeanors. They follow a small surge of cease-and-desist letters, lawsuits, and other official actions from states over Kalshi’s activities, in which numerous officials have complained that the company is skirting state gambling laws.

Conversely, prediction sites like Kalshi have argued that they are not in violation of state law because they are subject to federal regulation via the Commodity Futures Trading Commission.

Kalshi may be getting attacked left, right, and center, but the Kalshi has also taken its own, often preemptive, legal action.

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Kalshi sued Arizona’s Department of Gaming in federal court on March 12. The company’s lawsuit argued that Arizona’s regulatory attempts were intruding “into the federal government’s exclusive authority to regulate derivatives trading on exchanges.” Kalshi also recently sued Iowa and Utah on similar grounds.

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Mayes’ office argues the company is merely trying to avoid accountability.

“Kalshi is making a habit of suing states rather than following their laws. In the last three weeks alone, the company has filed lawsuits against Iowa and Utah, and now Arizona,” Mayes said in a statement. “Rather than work within the legal frameworks that states like Arizona have established, Kalshi is running to federal court to try to avoid accountability.”

Elisabeth Diana, Kalshi’s head of communications, called the Arizona criminal charges “seriously flawed” and a matter of “gamesmanship” related to the company’s own litigation against the state.

“Four days after Kalshi filed suit in federal court, these charges were filed to circumvent federal court and short-circuit the normal judicial process,” Diana said. “They attempt to prevent federal courts from evaluating the case based on the merits – whether Kalshi is subject to exclusive federal jurisdiction. These charges are meritless, and we look forward to fighting them in court.”

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Federal officials have signaled that they’re on the prediction industry’s side, setting up a potential regulatory showdown between states and the federal bureaucracy. Mike Selig, chair of the Commodity Futures Trading Commission, recently published an op-ed in the Wall Street Journal in which he accused state governments of having “waged legal attacks on the CFTC’s authority to regulate” such sites. Selig also claimed that his agency would no longer “sit idly by while overzealous state governments” undermined the agency’s “exclusive jurisdiction” over the industry.

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Disgruntled researcher leaks “BlueHammer” Windows zero-day exploit

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Disgruntled researcher leaks “BlueHammer” Windows zero-day exploit

Exploit code has been released for an unpatched Windows privilege escalation flaw reported privately to Microsoft, allowing attackers to gain SYSTEM or elevated administrator permissions.

Dubbed BlueHammer, the vulnerability was published by a security researcher discontent with how Microsoft’s Security Response Center (MSRC) handled the disclosure process.

Since, the security issue has no official patch and there is no update to address it, the flaw is considered a zero-day by Microsoft’s definition.

Wiz

It is unclear what triggered the public release of the exploit code. In a short post under the alias Chaotic Eclipse, the researcher says “I was not bluffing Microsoft, and I’m doing it again.”

“Unlike previous times, I’m not explaining how this works; y’all geniuses can figure it out. Also, huge thanks to MSRC leadership for making this possible,” the researcher added.

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On April 3rd, Chaotic Eclipse published a GitHub repository for the BlueHammer vulnerability exploit under the alias Nightmare-Eclipse, expressing disbelief and frustration at how Microsoft decided to address the security issue.

“I’m just really wondering what was the math behind their decision, like you knew this was going to happen and you still did whatever you did ? Are they serious ?”

The researcher also noted that the proof-of-concept (PoC) code contains bugs that may prevent it from working reliably.

Will Dormann, principal vulnerability analyst at Tharros (formerly Analygence), confirmed to BleepingComputer that the BlueHammer exploit works, saying that the flaw is a local privilege escalation (LPE) that combines a TOCTOU (time-of-check to time-of-use) and a path confusion.

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He explained that the issue is not easy to exploit and that it gives a local attacker access to the Security Account Manager (SAM) database, which contains password hashes for local accounts.

Given this access, attackers can escalate to SYSTEM privileges and potentially achieve complete machine compromise.

“At that point, [the attackers] basically own the system, and can do things like spawn a SYSTEM-privileged shell,” Dormann told BleepingComputer.

Exploit demo
Exploit demo
Source: Will Dormann

Some researchers testing the exploit confirmed that the code was not successful on Windows Server, confirming Chaotic Eclipse’s statement that there are bugs that may prevent it from working properly.

Will Dormann added that on the Server platform, the BlueHammer exploit increases permissions from non-admin to elevated administrator, a protection that requires the user to temporarily authorize an operation that needs full access to the system.

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While the reason behind Chaotic Eclipse/Nightmare-Eclipse’s disclosure remains uncertain, Dormann notes that one requirement from MSRC when submitting a vulnerability is to provide a video of the exploit.

Although this may help Microsoft sift through reported vulnerabilities more easily, it adds to the effort of submitting a valid report.

Despite BlueHammer requiring a local attacker to exploit it, the risk it poses is still significant, as hackers can gain local access through a variety of vectors, including social engineering, leveraging other software vulnerabilities, or through credential-based attacks.

BleepingComputer has contacted Microsoft for a comment on the BlueHammer flaw, and a spokesperson sent us the below statement:

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“Microsoft has a customer commitment to investigate reported security issues and update impacted devices to protect customers as soon as possible. We also support coordinated vulnerability disclosure, a widely adopted industry practice that helps ensure issues are carefully investigated and addressed before public disclosure, supporting both customer protection and the security research community.” – a Microsoft spokesperson

Article updated on 4/7 to add Microsoft comment

Automated pentesting proves the path exists. BAS proves whether your controls stop it. Most teams run one without the other.

This whitepaper maps six validation surfaces, shows where coverage ends, and provides practitioners with three diagnostic questions for any tool evaluation.

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New Jersey Cannot Regulate Kalshi’s Prediction Market, US Appeals Court Rules

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An anonymous reader quotes a report from Reuters: A federal appeals court ruled on Monday that New Jersey gaming regulators cannot prevent Kalshi from allowing people in the state to use its prediction market to place financial bets on the outcome of sporting events.
A three-judge panel of the Philadelphia-based 3rd U.S. Circuit Court of Appeals ruled 2-1 (PDF) in finding that the U.S. Commodity Futures Trading Commission has exclusive jurisdiction over the sports-related event contracts that Kalshi allows people to trade on its platform. The ruling marked the first time a federal appeals court has ruled on what has become the central issue in an escalating battle over the ability of state gaming regulators to police the activity of prediction market operators.

Kalshi and companies like it allow users to place trades and profit from predictions on events such as sports and elections. States argue that firms like Kalshi are operating without required state licenses, in violation of gaming laws, including bans on wagers by those under 21. Those states include New Jersey, which last year sent Kalshi a cease-and-desist letter stating that its listing of sports-related event contracts on its platform violated state gambling laws that prohibit betting on collegiate sports. Kalshi sued the state, arguing its event contracts qualify as “swaps,” a type of derivative contract, that under the Commodity Exchange Act can only be regulated by the CFTC, which had granted the company a license to operate a designated contract market (DCM).

A lower-court judge had sided with New York-based Kalshi and issued a preliminary injunction, prompting New Jersey to appeal. But a majority of the judges on the 3rd Circuit panel concluded the Commodity Exchange Act likely preempted state law. “Kalshi’s sports-related event contracts are swaps traded on a CFTC-licensed DCM, so the CFTC has exclusive jurisdiction,” U.S. Circuit Judge David Porter wrote. The ruling was in line with the position advanced in other litigation by the CFTC under President Donald Trump’s administration. The regulator last week sued Arizona, Connecticut and Illinois to prevent them from pursuing what it called unlawful efforts to regulate prediction markets.

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Gamer Builds the Switch Lite Pro Nintendo Never Released

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Nintendo Switch Lite Pro Mod
Handheld console fans have long praised Nintendo’s Switch Lite for its compact size and low price, but many have wished for a variant that included those fancy premium features without sacrificing portability. Fortunately, Tito from Macho Nacho Productions stepped up and created exactly that type of machine through a series of painstaking modifications that transformed a regular Switch Lite into something far more capable.



The parts selection was the foundation of this entire project, since Tito began with Retro Remake’s Super5 OLED kit, which replaces the stock LCD with a high-quality OLED panel with touch capabilities and HDMI output, which no regular Switch Lite has ever had. The Hall effect joysticks came next, and they are meant to prevent stick drift over time. The transition was completed with an aluminum shell machined to ultra-precise specifications, which replaced the original plastic body and gave the console a solid, high-quality build that appears to be from a high-end electronics brand.


Nintendo Switch 2 System
  • The next evolution of Nintendo Switch
  • One system, three play modes: TV, Tabletop, and Handheld
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Nintendo Switch Lite Pro Mod
Putting it all together was a lot easier than Tito expected, but you’ll need to be familiar with the hardware components to feel comfortable. Once you’ve opened up the casing and removed the original screen and control bits, you simply slot in the new OLED assembly and an HDMI enabled board, and the stick drift-proof Hall effect sticks simply go in the places they were meant to occupy, and then the aluminium shell slams on in with no room for error, using the original screws. If you’ve done something like this previously, the entire procedure takes about an hour, and the finished product appears factory fresh on the outside.

Nintendo Switch Lite Pro Mod
Once you’ve put everything together, the Switch Lite Pro showcases what all of the upgrades can achieve in everyday use. Gamers may now connect the console to a large TV or monitor via normal HDMI and play in docked mode on the big screen, something the base Lite cannot do. The OLED screen has deeper blacks, richer colors, and greater contrast than the LCD it replaced, making the games stand out even in the brightest environments. The touch input allows you to play games that rely on it, while the Hall effect sticks provide silky smooth control that stays precise for years. The aluminum body adds weight and durability without making the device feel clunky, and it stays cool over long sessions thanks to much enhanced heat dissipation.

Nintendo Switch Lite Pro Mod
When compared to the standard Switch Lite, the enhancements make a significant difference. Tito compared the hacked unit to a stock Switch Lite, and the OLED screen was noticeably brighter and more color correct across a variety of titles, even in light surroundings. The blacks are truly black, rather than some dark grey, and the dark scene elements come out. The HDMI output is rock solid at full quality, and switching between handheld and TV modes is a breeze.

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$100 Off Shark Promo Code | This April

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Keeping my house clean can feel like an impossible task with a litter-kicking-happy cat and a two-year-old on a mission to throw everything, whether it’s Cheerios or pizza, onto the floor. One of the things that has made it easier, though, is my Shark handheld vacuum. The Shark UltraCyclone Pet Pro Plus is one of our favorite handheld vacuums, and it’s made it easy to clean up messes from both my cat and tiny human without needing to lug my old vacuum out for every mess. If you want a mess-free home for less, check our Shark coupon code.

Get 10% Off Your First Order With a Shark Promo Code

If you’re buying a Shark vacuum for the first time, you’re in luck: you can get 10 percent off right away by signing up for Shark’s emails. You’ll be prompted to put your email in, and will be emailed a unique code for you to use to get 10 percent off your order of a single item. That item doesn’t have to be a vacuum—feel free to snag your own Shark FlexStyle, an air purifier, or even a red light mask.

Get 15% Off $150+ With the Shark Student Discount

If you’re a student, you can get one of the best Shark discount codes regularly available: 15 percent off purchases over $150. In order to get it, you’ll need an account on UNiDAYS, then visit the Shark website through the UNiDAYS portal to get the student discount code.

Give $20, Get a $20 Shark Coupon Code With Referral

If you’ve already had your first order on Shark’s website, all is not lost. You can refer a friend to get them a $20 discount on orders over $100 on Shark’s website. You’ll score a $20 discount for yourself, too, once that referral code is validated, though you’ll need to spend $200 to use it.

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15% Off Shark Espresso Machines

There is nothing better than a nice espresso in the morning. We have a lot of coffee-related opinions here on the WIRED Reviews team, and we have a list of our favorite espresso machines that keep us going every morning. While we’ve gotten used to our bad and boujee lifestyle, these little lifesaving machines can be very, very expensive. But hey, we can’t sacrifice taste for price. And with this Shark espresso machine discount, you won’t have to make any sacrifices. Right now, you can get up to 15% off Shark espresso machines.

Enjoy Frozen Treats for Less With the Shark Ninja Creami

We at WIRED love the Shark Ninja Creami; we called it “almost as good as having your own personal frozen yogurt shop.” (Read our full review here.) With a wide variety of recipes, simple use that’s easy enough for a 7-year-old to operate, and costing thousands less than commercial alternatives, it’s safe to say we are fans here. Check out Shark Ninja’s full catalogue of ice cream makers, including the Ninja CREAMi Scoop & Swirl, which turns virtually anything into soft serve; and the Ninja CREAMi 7-in-1 Ice Cream Maker, which allows you to make every sweet treat with ease at home, from gelato to sorbet to smoothie bowls. Plus, the Ninja CREAMi XL Deluxe 11-in-1 Ice Cream and Frozen Treat Maker, which allows you to make italian ice, frozen yogurt, and more. All of these viral makers are on sale right now, making it the perfect time to indulge in a sweet treat (for less).

Shop Responsibly (and Save) With Refurbished Shark Products

If you’re looking for an eco-conscious option, Shark has a refurbishment program where you can get a certified renewed vacuums, hair dryers, and stylers for a lower cost. It’s a great way to get a discount on Shark’s fantastic gadgets, with up to $100 off a refurbished product. There’s not always a refurbished product ready to buy, but you can sign up to get alerts for certain products, like the Shark FlexStyle system.

When to Save the Most With a Shark Promo Code

Wondering if there’s a best time to shop on Shark’s website? While some of the best times of year won’t be until the fall holiday season with Black Friday and Cyber Monday, you can keep an eye out for great sales during summer holidays like Memorial Day and Labor Day. Shark also has an end of season sale usually in July, plus a Shark Anniversary Sale in September.

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More Shark Cleaning Tools We Love

Shark makes more than just handheld vacuum cleaners: they’ve got robot vacuums, steam cleaners, cordless vacuums, carpet cleaners, and so much more. And there’s several we love, from the Shark PowerDetect (8/10, WIRED Recommends) and the Shark Genius Steam Mop. Shark also makes fantastic hair tools like the Shark FlexStyle (9/10, WIRED Recommends). In the spirit of spring cleaning, there’s no better time to get a brand-new Shark vacuum, especially since you can snag a Shark promo code for 10 percent off and up to $100 off any Shark vacuum. There’s also student discounts and referral codes for more money off if you qualify. Here are all the Shark promo codes you can’t miss.

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NYT Connections hints and answers for Tuesday, April 7 (game #1031)

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Looking for a different day?

A new NYT Connections puzzle appears at midnight each day for your time zone – which means that some people are always playing ‘today’s game’ while others are playing ‘yesterday’s’. If you’re looking for Monday’s puzzle instead then click here: NYT Connections hints and answers for Monday, April 6 (game #1030).

Good morning! Let’s play Connections, the NYT’s clever word game that challenges you to group answers in various categories. It can be tough, so read on if you need Connections hints.

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Snake Bros Keep Getting Bitten by Their Lethal Pets. Only Zoos Can Save Them

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Early editions of the index were a tabbed notebook. “I still have some of the original versions of it,” Boyer says. “You would go through, laboriously, by hand, turning the pages, and it would say ‘see page 27,’ like one of those find-your-own-ending books, and then you would put in a phone call, because the last section in the Antivenom Index was the home phone numbers of zookeepers.”

In 2006, Boyer and Steven Seifert, then a medical toxicologist at the University of Nebraska, partnered to bring the index online, where it remains today. Now, nearly 90 zoological organizations list their wares.

Image may contain Body Part Finger Hand Person Skin Tattoo and Baby

When Chris Gifford was bitten by his deadly green mamba, he was lucky to receive antivenom from South Carolina’s Riverbanks Zoo.

Courtesy of Chris Gifford

Gifford, the North Carolina man, had been comparatively lucky, as only one of his mamba’s fangs had pierced his skin. By the time he reached a nearby hospital, Gifford’s hand was swelling and creeping paralysis was causing his eyelids to droop. The Antivenom Index was activated, and South Carolina’s Riverbanks Zoo, about 200 miles to the southwest, had the antivenom he needed. Just 30 minutes after the mamba’s bite, Gifford was struggling to breathe as the paralysis started to affect his diaphragm.

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“It feels like you’re drowning,” he says.

Keepers at the Riverbanks Zoo packed 10 vials of antivenom on ice and sent them on a helicopter. Just as Gifford’s timer hit the six-hour mark, the hospital began administering the first of the vials. “Almost immediately, I could feel myself breathing,” Gifford says. He left the hospital some two days later.

If you’re bitten by a venomous snake in the northeastern United States, odds are good that you’ll be treated with vials of antivenom nestled in a refrigerator in the back room of the Bronx Zoo’s reptile house. The zoo collaborates with the nearby Jacobi Medical Center, whose dedicated snakebite response team makes it a rarity among US hospitals.

Inside the refrigerator are boxes, bins, and bags of the delicate glass vials that are often the difference between life and death. Shelves are lined with jars full of antivenom for Indian species and the North American coral snake, and lavender cartons with images of a poised king cobra. In all, the Bronx Zoo stocks 25 different antivenom varieties, many of which are polyvalent, meaning applicable to multiple species.

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Waymo is set to launch its London pilot this month, here’s what you need to know

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Waymo’s driverless taxis are making their way to London, starting with a pilot this month (April 2026), with a full launch coming in September, but what does that mean for the UK’s capital?

Will the city’s notoriously difficult-to-drive streets become a chaotic mess of robot carnage? Well, hopefully not — in fact, if the London experience is anything like the Waymos I’ve ridden in San Francisco, it might be the Uber replacement you’ve been waiting for.

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iPhone Fold delays appear possible as early testing hits snags

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Apple’s supply chain partners have been warned that mass production of iPhone Fold components could be pushed back if current setbacks aren’t overcome. “More time is needed.”

Gold folding iPhone render partially open on a glossy desk, dual rear cameras visible, beside a cute glowing round cat lamp and a wooden wall background
iPhone Fold runs into snags in production testing

The iPhone Fold has been rumored since Samsung foldables first hit the market in 2019. Even though the expensive category never grew out of a select niche, vocal Apple fans have hoped for such a product from the company for years.
It seemed that 2026 would finally be the year Apple unveiled an iPhone Fold, but that hope may be misplaced. According to a report from Nikkei Asia, Apple’s supply chain has been warned of a potential mass production and shipment delay.
Rumor Score: 🤯 Likely
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Russia's attempt to block VPNs is causing widespread banking outages

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According to Telegram CEO Pavel Durov, the Kremlin’s increasing efforts to control and censor the global internet are causing widespread problems for Russian users. The Russian-born entrepreneur confirmed that Telegram is now banned in the country, yet more than 50 million Russians continue to use it daily via VPNs.
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Trump Fires Attorney General Pam Bondi For Not Making His Vindictive Fantasies A Reality

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from the bring-in-the-next-scapegoat! dept

You’re never safe when you’re working for Trump. That much was obvious in Trump’s first term, when he fired Attorney General Jeff Sessions, Secretary of State Rex Tillerson, National Security Advisor John Bolton, and FBI Director James Comey. They were all fired for the same reason: failing to be completely loyal to Trump.

This time around even die-hard MAGA loyalists are being fired. DHS head Kristi Noem was dismissed from her position, despite being the enthusiastic figurehead of anti-migrant cruelty Trump definitely wanted in that position. Now, she’s cooling her heels and watching the dust settle on her political hopes as the doesn’t-sound-made-up-at-allSpecial Envoy for the Shield of the Americas.”

Less than a month later, another head has rolled. This time it’s Pam Bondi, who’s getting fired for failing to do the impossible while still remaining fiercely loyal to the Trump’s lost causes.

In recent weeks, Ms. Bondi tried to shore up her position by moving more aggressively against investigative targets singled out by Mr. Trump, including the former Obama official John O. Brennan and a former White House aide, Cassidy Hutchinson, whom the president has accused of lying about his actions on Jan. 6, 2021, according to officials briefed on the effort.

It is not entirely clear if any specific action or event finally tipped the balance for Mr. Trump, who had been reluctant to fire senior officials to avoid reprising the chaotic turnstile personnel turnover of his first administration.

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But with the dismissal of Ms. Noem and now Ms. Bondi, that might be changing. His calculus appears to have shifted after the quick confirmation of Markwayne Mullin as Ms. Noem’s replacement.

Bondi’s head may have been destined for the chopping block months ago, when Trump (in what appeared to be a personal message accidentally posted on main) berated Bondi for not doing all the impossible stuff he wanted done right now, like engaging in vindictive prosecutions that were (1) obviously vindictive, and (2) didn’t have enough evidence to support the hallucinatory charges dreamed up by Trump and his DOJ enablers.

Nothing has improved since then. Lots of prosecutors have left the DOJ, refusing to engage in Trump’s overt politicization of the department. Others have been dismissed for the same reason. A handful of handpicked prosecutors have been sidelined by judges because they were never formally appointed. And grand juries are frequently refusing to buy what the government’s selling, terminating prosecutions before they can even get off the ground.

Not that we should expect anything better (or more ethical) from her replacement. Todd Blanche is a true Trump loyalist. But he’s taking over a DOJ that’s short on experience, long on MAGA loyalty, and whose reputation has been completely destroyed by this administration and its actions.

The stuff Bondi failed to get done will continue to not happen. Anyone stepping into this position should know it’s only going to be temporary. The president who thinks he’s a king will continue to see courts stifle his worst impulses. Changing the name on the letterhead isn’t suddenly going to make vindictive, politically motivated prosecutions any more legal or feasible.

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But I don’t have any sympathy for anyone being shit-canned for failing to satisfy the whims of a megalomaniac who thinks he’s a king, rather than a temporarily elevated politician. They’re far more than merely complicit. They’re fully supportive of destroying America and its institutions to usher in a new age of white Christian nationalism. So, fuck ’em. They got what they deserved.

Filed Under: doj, epstein files, failure, pam bondi, todd blanche, trump administration, vindictive prosecution

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