Utah sues Kalshi and Susquehanna to halt alleged illegal betting

Utah has taken its fight with Kalshi out of federal court and into its own. On October 20, 2026, Attorney General Derek Brown filed a civil lawsuit in Utah’s Third District Court against KalshiEx LLC and two trading firms affiliated with Susquehanna. The state’s core allegation: the companies kept offering sports and event contracts to Utah residents even after a federal judge confirmed Utah’s right to enforce its gambling ban. What Utah is asking for The complaint goes well beyond asking for a cease-and-desist. Utah wants injunctive relief that would cut off residents’ access to the contracts in question. It also seeks restitution for losses Utah residents suffered on the platform. On top of that, the state wants disgorgement, meaning the companies would have to hand over profits earned from services the state says were offered unlawfully. Finally, Utah is asking the court to declare the platforms a public nuisance. Kalshi has more than 32,000 verified accounts registered to Utah residents, according to the research findings tied to the case. Estimated platform fees from those users range between $30.6 million and $61.2 million. Why the market makers are in the crosshairs The incl...