Utah AG sues Kalshi, pursues profits from prediction market company
Derek Brown likened the prediction market company to a “public nuisance“ that was “causing a significant and substantial ongoing harm“ to state residents.
Utah Attorney General Derek Brown filed a lawsuit against Kalshi and related entities, alleging illegal betting activities within the US state since 2024. The suit seeks to recover between $30 million and $60 million in profits earned through alleged illegal event contracts. Brown claims the prediction markets platform illegally provided services to over 32,000 Utah users, causing significant harm to residents.
Despite Kalshi's February lawsuit against Utah, a judge ruled in favor of Utah officials in August, stating federal laws do not override state gambling laws. Kalshi maintains it is a federally regulated exchange overseen by the CFTC, and its customers trade with each other, setting prices accordingly. The civil lawsuit is part of a growing trend of US state authorities taking legal action against prediction market platforms like Kalshi and Polymarket for alleged violations of state gambling laws, many involving sports betting.
Other states, including Arizona, Michigan, Ohio, Kentucky, Nevada, Massachusetts, Wisconsin, and New York, have also filed civil suits against prediction market companies. The Utah case comes amid the US Supreme Court's consideration of accepting a petition to review New Jersey's case against Kalshi over allegedly illegal sports bets, which may ultimately determine whether prediction market companies fall under state authorities or the CFTC.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
