The charges come after a federal judge ruled that Utah can enforce its anti-gambling laws against prediction markets.
Published on October 29, 2026
The US state of Utah has announced criminal charges against popular prediction marketplace Kalshi and its two co-founders, accusing the platform and its executives of illegally promoting online gambling.
Utah Attorney General Derek Brown filed suit Wednesday against Kalshi, Chief Executive Tarek Mansour and Chief Operating Officer Luana Lopes Lara, a day after U.S. President Donald Trump’s administration sued the state to block its civil actions against the platform.
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According to the criminal complaint filed in a Salt Lake City court, Kalshi allegedly facilitated an undercover law enforcement agent’s bets on sporting events, including NFL games.
The charges come after a federal judge ruled in August that Utah was entitled to enforce its strict anti-gambling laws against online prediction markets, following a legal attempt by Kalshi to block enforcement of the law.
The criminal complaint charges the defendants with 12 counts of promoting online gambling, one count of general promotion of gambling, and one count of illegal activity type.
Kalshi and Brown’s office did not immediately respond to requests for comment.
Utah has some of the strictest bans against gambling in the United States, with the state’s constitution explicitly prohibiting lawmakers from legalizing the activity.
These accusations mark an escalation in the confrontation between American states and the Trump administration over the regulation of prediction markets.
On Tuesday, the Commodity Futures Trading Commission filed a lawsuit seeking to block Utah’s enforcement action against prediction markets, arguing that the platforms fall under federal jurisdiction.
The regulator announced the move after Utah filed a civil suit last week accusing Kalshi of facilitating betting on sports, elections, politics and other outcomes in violation of anti-gambling laws.
Dozens of U.S. states, led by Republican and Democratic administrations, have argued that the Commodity Futures Trading Commission does not have the authority to regulate prediction markets.
Last month, the State of New Jersey asked the United States Supreme Court to rule on whether state or federal authorities have jurisdiction over sports betting on predictions marketplace platforms.
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