Key facts
- Utah AG alleges Kalshi facilitated illegal betting in the state since 2024.
- Officials seek $30 million to $60 million in profits from allegedly illegal event contracts.
- Kalshi claims to be a federally regulated financial exchange overseen by the CFTC.
- A judge ruled in favor of Utah in August, stating state gambling laws are not preempted by federal law.
- Arizona is the only state pursuing criminal charges against Kalshi.
Utah Attorney General Derek Brown announced a lawsuit Tuesday against prediction market platform Kalshi, its affiliates, and two Susquehanna trading companies, alleging they have facilitated illegal betting in the state since 2024. Officials are seeking $30 million to $60 million in profits from allegedly illegal event contracts. Brown stated that the operation is causing significant and substantial ongoing harm to a significant number of Utahns. Kalshi, which claims to be a federally regulated financial exchange overseen by the CFTC, argued that no single state should have veto power over its operations. A judge previously ruled in favor of Utah officials, stating federal laws do not preempt state gambling laws, and an appellate court denied Kalshi's request for an injunction.