Utah charges Kalshi and cofounders with illegal gambling promotion
Utah accuses prediction market of violating state anti-gambling laws.
The Brief
- Utah Attorney General Derek Brown filed criminal charges against Kalshi and its cofounders.
- Charges include 12 counts of online gambling promotion and one count of general gambling promotion.
- Federal judge previously ruled Utah could enforce anti-gambling laws against prediction markets.
The US state of Utah has charged Kalshi, a popular prediction market, and its two cofounders with criminal offenses related to gambling promotion.
According to a criminal complaint filed in Salt Lake City, Kalshi allegedly facilitated an undercover law enforcement officer’s wagers on sports events, including games in the NFL.
The charges come after a federal judge in August ruled that Utah could enforce its anti-gambling laws against online prediction markets, following a legal challenge by Kalshi.
The complaint accuses the defendants of 12 counts of online gambling promotion, one count of general gambling promotion, and one count of pattern of unlawful activity.
The Commodity Futures Trading Commission filed a lawsuit to block Utah’s enforcement actions, arguing that prediction markets fall under federal jurisdiction.
Dozens of US states have argued that federal regulators do not have authority over sports betting on prediction market platforms.
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