Utah has filed criminal charges against prediction market operator Kalshi and its co-founders, accusing the company of promoting illegal online gambling in the state.
Attorney General Derek Brown brought the case against Kalshi, Tarek Mansour and Luana Lopes Lara in Salt Lake County. The defendants were issued summonses to appear in court rather than arrest warrants.
The charges comprise one count of pattern of unlawful activity, one count of general gambling promotion and 12 counts of online gambling promotion. Prosecutors allege that a state investigator was able to place wagers on sporting events through Kalshi in September, despite using a Utah address, phone number and bank card.
Court documents say the investigator placed 12 wagers on events including American football, baseball and football. He risked about $114 in total and lost roughly $25, according to local reporting on the charging documents. ([sltrib.com](https://www.sltrib.com/news/2026/10/28/utah-files-14-criminal-charges/?utm_source=openai))
Kalshi faces criminal charges in Utah
Kalshi describes itself as a federally regulated exchange where users trade contracts linked to the outcome of real-world events. The company has argued that its products are financial contracts rather than conventional bets.
Mr Brown rejected that distinction in a statement accompanying the charges. He said: “Gambling is illegal in Utah, whether you place the bet, run the game, or promote it. Calling it a ‘prediction market’ doesn’t change what it is, and being federally registered doesn’t put a company above the law.”
The criminal case follows a civil lawsuit filed by Utah against Kalshi last week, alleging that the platform allowed residents to place unlawful wagers on sports, elections and other events. The state says Kalshi continued operating in Utah after a federal court ruling in August allowed officials to enforce the state’s anti-gambling laws against it. ([utahnewsdispatch.com](https://utahnewsdispatch.com/2026/10/29/utah-criminal-charges-against-kalshi-gambling-ban/?utm_source=openai))
The legal dispute intensified on Tuesday when the US Commodity Futures Trading Commission sued Utah, seeking to prevent the state from enforcing its gambling laws against Kalshi. The federal agency argues that prediction markets fall within its regulatory authority, putting it at odds with Utah’s attempt to apply state gambling rules.
Kalshi has faced similar challenges elsewhere in the United States as states question whether its sports contracts amount to gambling. The company’s federal status and the extent of state authority over its operations are now being contested through several court cases.
