Utah files criminal charges against prediction market Kalshi and executives

The US state of Utah filed criminal charges on Wednesday against prediction market operator Kalshi and two of its top executives, accusing them of illegally promoting online gambling. Al Jazeera and The Guardian reported that Utah Attorney General Derek Brown filed the charges in a district court in Salt Lake City. The charges target Kalshi along with chief executive officer Tarek Mansour and chief operating officer Luana Lopes Lara. [1][2][3][4]

The Guardian reported that the felony charges include violating the state gambling ban and profiting from illegal activity. Kalshi described the state charges as crazy overreach, according to The Guardian. Reuters and Ars Technica also reported that Utah has criminally charged the platform. [2][4][5]

The criminal filing comes after a federal judge ruled in August that Utah could enforce its strict anti-gambling laws against prediction markets, Al Jazeera and The Guardian reported. The ruling rejected an effort by Kalshi to prevent the state from enforcing its prohibition on gambling activity. [1][2]

Kalshi is a prediction market platform based in Manhattan, New York City, that launched in July 2021. The platform allows individuals to place bets on economic indicators, weather patterns, legislative outcomes, and sports. Ars Technica and The Salt Lake Tribune reported that the federal government has sued Utah to stop the state's actions against Kalshi. [5][6][7]