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

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

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 AZ 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.”

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 company 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.

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.”

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. Michael 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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Midjourney CEO David Holz just showed off the company’s first hardware product and plans to build a San Francisco spa, which he admitted is a bit different from the “cat pictures” produced by its AI image generator. Dubbed The Midjourney Scanner, it’s an ultrasound-based full-body scanner that uses a ring of sensors to capture vertical slices of the inside of your body, looking at the composition of your muscle, fat, bone, and organs to start. Holz said ideally, you could do this once a year or every single day, as it “aims for image quality comparable to MRI in many ways.”

He mentioned that one way he’d like to use it would be to see how his body changes in response to diet and workout changes, saying, “I’m not the most measured man on Earth yet, you know, but maybe I want to have that daily [measurable information]. A set of job listings advertises the company’s goal as trying to “build and launch the world’s first full-body ultrasound CT scanner, ultimately bringing safe, fast, and high fidelity preventative scanning to billions via a magical spa experience.”

The Midjourney Scanner was developed in a partnership with ultrasound tech company Butterfly Network, which said it uses “40 Butterfly Ultrasound-on-Chip™ imaging modules per system.”

The scanning process starts with stepping onto a platform that drops down into the water on rails through a ring of thousands of transducers that create ultrasonic waves and then record the ripples from them passing through your body to analyze them and create detailed 3D images, saying the scan will take about 60 seconds. Holz said about a dozen people have been scanned so far.

It starts by stepping into a shallow pool of golden light. You then begin to descend into the water. Your body passes through a ring of underwater sensors, each acting like a dolphin, using its echolocation. The sensors send ultrasonic sound waves through your body from every angle. With enough waves, and enough angles, we form an image of what’s happening inside your body.

It combines those sensors with two petaflops of processing power. But after watching the livestreamed reveal, I’m still unclear on what Midjourney’s AI image generation tech exactly has to do with the Midjourney Medical effort, beyond an alternative business for otherwise-unused AI compute.

Holz hopes to put 10 of the scanners into a Midjourney Spa location in San Francisco’s Union Square that will open before the end of 2027, and offered to scan the hands of attendees at its launch event. The Midjourney Spa will have a gym, saunas, and cold plunges to go along with the hot tub-equipped scanning rooms where visitors will get into the water to be scanned.

He did mention that various medical applications would require FDA clearances, but for now, Midjourney Medical says it’s working on “body composition maps” that don’t require the same level of clearance as diagnostic imaging. It also says the “library of scans” users create can be shared with doctors, AI health tools, or others, and that “We take data privacy seriously — more details on our data policies will come as we get closer to launch.”

Holz suggested that eventually these scans could become better than an MRI, without radiation, powerful magnets, or other complicating factors, to get a look at what’s going on inside people’s bodies “real fast.” In response to a question, he imagined a future where the FDA had a class of devices to look at “weird” things and allowed people to “just try to get as much data as we can.”

#Midjourney #generating #cat #images #fullbody #ultrasound #scansAI,Health,News,Science">Midjourney goes from generating cat images to full-body ultrasound scansMidjourney CEO David Holz just showed off the company’s first hardware product and plans to build a San Francisco spa, which he admitted is a bit different from the “cat pictures” produced by its AI image generator. Dubbed The Midjourney Scanner, it’s an ultrasound-based full-body scanner that uses a ring of sensors to capture vertical slices of the inside of your body, looking at the composition of your muscle, fat, bone, and organs to start. Holz said ideally, you could do this once a year or every single day, as it “aims for image quality comparable to MRI in many ways.”He mentioned that one way he’d like to use it would be to see how his body changes in response to diet and workout changes, saying, “I’m not the most measured man on Earth yet, you know, but maybe I want to have that daily [measurable information]. A set of job listings advertises the company’s goal as trying to “build and launch the world’s first full-body ultrasound CT scanner, ultimately bringing safe, fast, and high fidelity preventative scanning to billions via a magical spa experience.”The Midjourney Scanner was developed in a partnership with ultrasound tech company Butterfly Network, which said it uses “40 Butterfly Ultrasound-on-Chip™ imaging modules per system.”The scanning process starts with stepping onto a platform that drops down into the water on rails through a ring of thousands of transducers that create ultrasonic waves and then record the ripples from them passing through your body to analyze them and create detailed 3D images, saying the scan will take about 60 seconds. Holz said about a dozen people have been scanned so far.It starts by stepping into a shallow pool of golden light. You then begin to descend into the water. Your body passes through a ring of underwater sensors, each acting like a dolphin, using its echolocation. The sensors send ultrasonic sound waves through your body from every angle. With enough waves, and enough angles, we form an image of what’s happening inside your body.It combines those sensors with two petaflops of processing power. But after watching the livestreamed reveal, I’m still unclear on what Midjourney’s AI image generation tech exactly has to do with the Midjourney Medical effort, beyond an alternative business for otherwise-unused AI compute.Holz hopes to put 10 of the scanners into a Midjourney Spa location in San Francisco’s Union Square that will open before the end of 2027, and offered to scan the hands of attendees at its launch event. The Midjourney Spa will have a gym, saunas, and cold plunges to go along with the hot tub-equipped scanning rooms where visitors will get into the water to be scanned.He did mention that various medical applications would require FDA clearances, but for now, Midjourney Medical says it’s working on “body composition maps” that don’t require the same level of clearance as diagnostic imaging. It also says the “library of scans” users create can be shared with doctors, AI health tools, or others, and that “We take data privacy seriously — more details on our data policies will come as we get closer to launch.”Holz suggested that eventually these scans could become better than an MRI, without radiation, powerful magnets, or other complicating factors, to get a look at what’s going on inside people’s bodies “real fast.” In response to a question, he imagined a future where the FDA had a class of devices to look at “weird” things and allowed people to “just try to get as much data as we can.”#Midjourney #generating #cat #images #fullbody #ultrasound #scansAI,Health,News,Science

The Midjourney Scanner, it’s an ultrasound-based full-body scanner that uses a ring of sensors to capture vertical slices of the inside of your body, looking at the composition of your muscle, fat, bone, and organs to start. Holz said ideally, you could do this once a year or every single day, as it “aims for image quality comparable to MRI in many ways.”

He mentioned that one way he’d like to use it would be to see how his body changes in response to diet and workout changes, saying, “I’m not the most measured man on Earth yet, you know, but maybe I want to have that daily [measurable information]. A set of job listings advertises the company’s goal as trying to “build and launch the world’s first full-body ultrasound CT scanner, ultimately bringing safe, fast, and high fidelity preventative scanning to billions via a magical spa experience.”

The Midjourney Scanner was developed in a partnership with ultrasound tech company Butterfly Network, which said it uses “40 Butterfly Ultrasound-on-Chip™ imaging modules per system.”

The scanning process starts with stepping onto a platform that drops down into the water on rails through a ring of thousands of transducers that create ultrasonic waves and then record the ripples from them passing through your body to analyze them and create detailed 3D images, saying the scan will take about 60 seconds. Holz said about a dozen people have been scanned so far.

It starts by stepping into a shallow pool of golden light. You then begin to descend into the water. Your body passes through a ring of underwater sensors, each acting like a dolphin, using its echolocation. The sensors send ultrasonic sound waves through your body from every angle. With enough waves, and enough angles, we form an image of what’s happening inside your body.

It combines those sensors with two petaflops of processing power. But after watching the livestreamed reveal, I’m still unclear on what Midjourney’s AI image generation tech exactly has to do with the Midjourney Medical effort, beyond an alternative business for otherwise-unused AI compute.

Holz hopes to put 10 of the scanners into a Midjourney Spa location in San Francisco’s Union Square that will open before the end of 2027, and offered to scan the hands of attendees at its launch event. The Midjourney Spa will have a gym, saunas, and cold plunges to go along with the hot tub-equipped scanning rooms where visitors will get into the water to be scanned.

He did mention that various medical applications would require FDA clearances, but for now, Midjourney Medical says it’s working on “body composition maps” that don’t require the same level of clearance as diagnostic imaging. It also says the “library of scans” users create can be shared with doctors, AI health tools, or others, and that “We take data privacy seriously — more details on our data policies will come as we get closer to launch.”

Holz suggested that eventually these scans could become better than an MRI, without radiation, powerful magnets, or other complicating factors, to get a look at what’s going on inside people’s bodies “real fast.” In response to a question, he imagined a future where the FDA had a class of devices to look at “weird” things and allowed people to “just try to get as much data as we can.”

#Midjourney #generating #cat #images #fullbody #ultrasound #scansAI,Health,News,Science">Midjourney goes from generating cat images to full-body ultrasound scans

Midjourney CEO David Holz just showed off the company’s first hardware product and plans to build a San Francisco spa, which he admitted is a bit different from the “cat pictures” produced by its AI image generator. Dubbed The Midjourney Scanner, it’s an ultrasound-based full-body scanner that uses a ring of sensors to capture vertical slices of the inside of your body, looking at the composition of your muscle, fat, bone, and organs to start. Holz said ideally, you could do this once a year or every single day, as it “aims for image quality comparable to MRI in many ways.”

He mentioned that one way he’d like to use it would be to see how his body changes in response to diet and workout changes, saying, “I’m not the most measured man on Earth yet, you know, but maybe I want to have that daily [measurable information]. A set of job listings advertises the company’s goal as trying to “build and launch the world’s first full-body ultrasound CT scanner, ultimately bringing safe, fast, and high fidelity preventative scanning to billions via a magical spa experience.”

The Midjourney Scanner was developed in a partnership with ultrasound tech company Butterfly Network, which said it uses “40 Butterfly Ultrasound-on-Chip™ imaging modules per system.”

The scanning process starts with stepping onto a platform that drops down into the water on rails through a ring of thousands of transducers that create ultrasonic waves and then record the ripples from them passing through your body to analyze them and create detailed 3D images, saying the scan will take about 60 seconds. Holz said about a dozen people have been scanned so far.

It starts by stepping into a shallow pool of golden light. You then begin to descend into the water. Your body passes through a ring of underwater sensors, each acting like a dolphin, using its echolocation. The sensors send ultrasonic sound waves through your body from every angle. With enough waves, and enough angles, we form an image of what’s happening inside your body.

It combines those sensors with two petaflops of processing power. But after watching the livestreamed reveal, I’m still unclear on what Midjourney’s AI image generation tech exactly has to do with the Midjourney Medical effort, beyond an alternative business for otherwise-unused AI compute.

Holz hopes to put 10 of the scanners into a Midjourney Spa location in San Francisco’s Union Square that will open before the end of 2027, and offered to scan the hands of attendees at its launch event. The Midjourney Spa will have a gym, saunas, and cold plunges to go along with the hot tub-equipped scanning rooms where visitors will get into the water to be scanned.

He did mention that various medical applications would require FDA clearances, but for now, Midjourney Medical says it’s working on “body composition maps” that don’t require the same level of clearance as diagnostic imaging. It also says the “library of scans” users create can be shared with doctors, AI health tools, or others, and that “We take data privacy seriously — more details on our data policies will come as we get closer to launch.”

Holz suggested that eventually these scans could become better than an MRI, without radiation, powerful magnets, or other complicating factors, to get a look at what’s going on inside people’s bodies “real fast.” In response to a question, he imagined a future where the FDA had a class of devices to look at “weird” things and allowed people to “just try to get as much data as we can.”

#Midjourney #generating #cat #images #fullbody #ultrasound #scansAI,Health,News,Science

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