A federal judge has denied a bid by prediction market operator Kalshi to bar Arizona prosecutors from moving forward with a criminal case against the company. Judge Michael Liburdi also has denied Kalshi’s request for a ruling saying federal law trumps Arizona’s gambling laws. Liburdi says it's too early in the case to decide that point. Kalshi faces 20 misdemeanor counts of wagering in Arizona. State prosecutors allege Kalshi accepted bets on political outcomes, college sports and individual player performance. Kalshi maintains it’s a financial marketplace rather than a gambling operation and should answer only to the U.S. Commodity Futures Trading Commission, not the state of Arizona.