Utah sues Kalshi, seeks up to $61M over alleged illegal betting

Utah has filed a civil lawsuit against prediction market operator Kalshi and several trading firms, seeking to recover up to $61.2 million in allegedly unlawful fees and stop the platform from offering event contracts to state residents. Summary Utah has sued Kalshi, affiliated companies and two Susquehanna trading firms over alleged illegal gambling. The state estimates Kalshi collected between $30.6 million and $61.2 million in fees from Utah-linked accounts. Attorney General Derek Brown wants the court to stop several categories of event contracts and order financial restitution. A federal judge ruled against Kalshi’s challenge to Utah’s gambling laws in August, but an appeal remains pending. Kalshi maintains that its event contracts fall under federal Commodity Futures Trading Commission oversight. Attorney General Derek Brown accused Kalshi and its affiliates of facilitating illegal gambling since September 2024, in an October 20 court complaint. The case, filed in Utah’s Third District Court, names two Susquehanna trading companies alongside the prediction market operator. Meanwhile, the lawsuit seeks an injunction against contracts covering sports, elections, politics, cultu...