Utah files criminal charges against prediction market Kalshi
Utah authorities have filed criminal charges against prediction market operator Kalshi and its two founders, escalating a nationwide dispute over whether sports prediction contracts constitute illegal gambling.
The charges, filed on October 28, name Kalshi chief executive Tarek Mansour and chief operating officer Luana Lopes Lara, with prosecutors alleging the company continued offering gambling products to Utah residents despite a federal court ruling allowing the state to enforce its gambling laws.
The case includes 13 gambling-related charges and an additional allegation involving profits from unlawful activity.
Utah Attorney General Derek Brown said federal registration did not exempt prediction market operators from state gambling legislation.
“Calling it a ‘prediction market’ doesn’t change what it is,” Brown said.
Kalshi rejected the allegations, describing the prosecution as a “crazy overreach” and indicating it would challenge the charges.
The company maintains that its event contracts fall under the exclusive jurisdiction of the federal Commodity Futures Trading Commission rather than individual state gambling regulators.
The dispute follows similar enforcement proceedings in Arizona, where criminal charges against Kalshi were previously placed on hold.
Legal challenges involving prediction markets are now underway across numerous US states, with conflicting court decisions creating uncertainty over the industry’s regulatory future.
