Utah Escalates Kalshi Fight With Felony Charges
The prediction-market platform and its two cofounders were charged.
Utah has filed felony charges against prediction market company Kalshi and its two founders, Tarek Mansour and Luana Lopes Lara, alleging a pattern of unlawful activity that could lead to up to 75 years in prison if convicted. Utah Attorney General Derek Brown stated that gambling is illegal in Utah, regardless of who participates, and federal courts have ruled that Utah's gambling laws apply to Kalshi.
The company recently announced a $1 billion funding round, valuing it at $40 billion, while the criminal charges were filed the day before. Kalshi has dismissed the charges as a political overreach and plans to contest them in court. The fight over prediction markets has escalated since Kalshi sued Utah to stop enforcement of its gambling laws, which a September ruling denied.
Utah has also sued Kalshi and market maker Susquehanna in federal court and asked a court to prohibit Kalshi from offering sports and election markets in the state. The Commodity Futures Trading Commission has also joined the dispute, suing Utah to protect its exclusive federal jurisdiction over prediction markets.
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