Utah AG Sues Kalshi Over Alleged Violations of State Gambling Laws

SALT LAKE CITY, Utah — Utah Attorney General Derek Brown today announced that the Utah Attorney General’s Office has filed a civil lawsuit against KalshiEX LLC and related entities in Utah state court over illegal gambling offered to Utah residents through the company’s online prediction market platform. 

The complaint alleges that Kalshi lets Utahns bet on sports, elections, politics and other outcomes, and that this violates Utah’s gambling laws. Utah’s Constitution bars the Legislature from authorizing gambling, and state law makes it illegal. The complaint also alleges Kalshi’s activity is a public nuisance that is causing substantial ongoing harm to Utahns, and it asks the court to stop Kalshi from offering these bets in Utah and order the other relief described in the complaint.  

“Kalshi runs an online casino in Utah and calls it a prediction market. That violates Utah law,” said Utah Attorney General Derek Brown. “Not only do our state laws ban gambling but Utah is one of only two states where gambling is also prohibited under the state constitution. For 130 years, Utah has been clear: gambling has no place here, and we will enforce our laws.” 

The lawsuit follows a federal court ruling for Utah. Kalshi sued Utah officials, including the Governor and the Attorney General, in February 2026, arguing that the federal Commodity Exchange Act prevents Utah from regulating its platform. In August, U.S. District Judge Robert Shelby granted summary judgment to Utah, holding that the federal law does not override Utah’s gambling laws. Kalshi appealed to the U.S. Court of Appeals for the Tenth Circuit, which on Sept. 8 denied Kalshi’s request to block enforcement of Utah’s laws pending appeal. That appeal remains pending.

-https://attorneygeneral.utah.gov/utah-sues-kalshi/

Source:The State AG ReportState:UtahIndustry:Media, Entertainment, Sports, incl. Gaming

• In the latest AG legal skirmish over prediction markets, Utah AG Derek Brown filed a lawsuit against Kalshi Inc. and several affiliated entities, along with Susquehanna International Group and an affiliate, alleging violations of state gambling and sports betting laws dating to at least 2024. The state is seeking an estimated $30 to $60 million in profits, with the final amount to be determined through discovery, allegedly earned from Utah residents from accessing the platform. The lawsuit also seeks geolocation restrictions to prevent Utah residents from accessing the platform.
• According to the AG’s office, data from Kalshi showed that nearly 56,000 accounts listed Utah addresses as of February and had placed more than 5 million wagers. The lawsuit follows an earlier dispute in which Kalshi challenged Utah’s enforcement of its gambling laws. In August, a federal judge ruled that Utah could enforce its laws against Kalshi and similar prediction markets.
• AG Brown also raised concerns about the potential effects of prediction markets and betting apps on young men, including addiction-related mental health and relationship problems.

Office of the Utah Attorney General

https://attorneygeneral.utah.gov/utah-sues-kalshi/