Arizona filed criminal charges against Kalshi today, accusing the prediction market company of operating an illegal gambling business.

• Why it matters: It's a dramatic escalation of the legal battle over these fast-growing platforms.

Catch up quick: Kalshi allows users in all 50 states to risk money on event contracts — including what it calls "100% legal sports trading."

• Detractors say it usurps state gambling regulations — and while Kalshi has faced opposition from several states, these are the first criminal charges.

⚖️ Driving the news: "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," Arizona AG Kris Mayes, a Democrat, said in a statement.

🗣️ Kalshi blasted the AG's "paper-thin arguments," arguing that it's properly regulated by the U.S. Commodity Futures Trading Commission.

• "It's different from what sportsbooks and casinos offer their customers, and it should not be overseen by a patchwork of inconsistent state laws," Kalshi said in a statement.

Zoom out: A majority of Americans view prediction market trading as closer to gambling than investing, according to a poll by Ipsos and the American Institute for Boys and Men, released today.

• 61% of the 2,363 adults surveyed say prediction market trading is "closer to gambling," while 8% say it's "closer to investing."

🥊 What we're watching: A looming clash between federal regulators and states.

• The new chair of the CFTC, Mike Selig, recently appointed by President Trump, has been supportive of prediction markets and threatened to fight states that challenge the commission's regulatory turf.

🏛️ The bottom line: The fight over prediction markets is likely headed to the Supreme Court.

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Nvidia CEO Jensen Huang said the company is in the process of restarting manufacturing of its H200 chips for shipments to China, Axios' Ina Fried writes.

• Why it matters: Nvidia is eager to re-enter the crucial Chinese market, but its efforts have been hampered by U.S. export restrictions and Beijing's push to build a domestic chip industry.

🗣️ Driving the news: "We've been licensed for many customers in China for H200," Huang said, speaking to reporters at the company's GTC event in San Jose, California today. "We have received purchase orders from many customers, and we're in the process of restarting our manufacturing."

🇨🇳 Yes, but: Beijing has to approve any sales into the country, and it's been pressing domestic companies to use Chinese-made chip.

😱 What they're saying: Huang also cautioned that some in the tech world are "scaring everybody about a science fiction version of AI," something he said strikes him as arrogant.

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✈️ Delta Air Lines, American Airlines and United Airlines all hiked their revenue outlooks. They say travel demand is looking strong to start 2026 despite fears about jet fuel price spikes. (CNBC)

🪙 Mastercard took another step toward embracing stablecoins, agreeing to acquire London-based startup BVNK for up to $1.8 billion. (Axios)

🌭 Unilever — which owns Colman's condiments and Maille Dijon mustard — is considering spinning off its food business. (Bloomberg)

Amazon is rolling out new one-hour and three-hour delivery options across a growing number of U.S. cities, accelerating the delivery-speed arms race, Axios' Kelly Tyko writes.

• 🏃 The race to deliver essentials in hours — not days — is accelerating as Amazon, Walmart, Target and others push faster fulfillment.

📦 Driving the news: Amazon said today that customers can now order more than 90,000 products — including household essentials, health and beauty items, electronics, and toys — for delivery in as little as one hour.

• One-hour delivery is already available in hundreds of U.S. cities and towns, while three-hour delivery is live in more than 2,000 locations.
• Prime members will pay $9.99 for one-hour delivery and $4.99 for three-hour delivery, while nonmembers pay higher fees.

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