Utah Files Felony Charges Against Kalshi, Co-Founders Over Sports Prediction Markets

Utah filed criminal charges against prediction market KalshiEX LLC and co-founders CEO Tarek Mansour and COO Luana Lopes Lara, accusing them of illegally promoting gambling in the state, ABC4 reported Wednesday. The company faces one count of pattern of unlawful activity (second-degree felony), 12 counts of online gambling promotion (third-degree felony) and one count of gambling promotion (misdemeanor). Prosecutors allege an undercover state agent placed 12 wagers on NFL and college games in September, passing a location check, with Kalshi collecting fees on each bet. Attorney General Derek Brown said calling it a "prediction market" does not change its legal status. Kalshi called the charges "a crazy overreach," vowing to fight them in court as it did in Arizona. The charges escalate a dispute involving the federal government. Utah sued Kalshi last week, and the CFTC sued Utah on Tuesday to block enforcement against CFTC-registered exchanges—the 10th such state action. In August, U.S. District Judge Robert Shelby ruled federal law does not preempt Utah's anti-gambling laws; Kalshi is appealing to the Tenth Circuit.