Utah’s attorney general has brought criminal charges against the prediction market Kalshi and two of its cofounders, alleging the platform illegally promoted online gambling. Derek Brown filed the charges on Wednesday against Kalshi, chief executive Tarek Mansour and chief operating officer Luana Lopes Lara.
The filing came a day after the administration of US President Donald Trump sued Utah to halt the state’s civil enforcement actions against the platform. According to a criminal complaint lodged in a Salt Lake City court, Kalshi facilitated an undercover officer’s wagers on sports events, including NFL games.
Gambling promotion counts and an earlier federal ruling
The complaint accuses the defendants of 12 counts of online gambling promotion, one count of general gambling promotion and one count of pattern of unlawful activity. The charges follow an August ruling by a federal judge that Utah could enforce its anti-gambling laws against online prediction markets, after Kalshi had sought to block that enforcement.
Kalshi and Brown’s office did not immediately respond to requests for comment.
A widening dispute between states and federal regulators
The charges mark an escalation in a standoff between US states and the Trump administration over how prediction markets are regulated. On Tuesday, the Commodity Futures Trading Commission sued to halt Utah’s enforcement moves, arguing that these platforms fall under federal jurisdiction.
The regulator acted after Utah filed a civil lawsuit last week, accusing Kalshi of enabling bets on sports, elections, politics and other outcomes. Dozens of US states, led by both Republican and Democratic administrations, have argued that the commission lacks the authority to regulate prediction markets.
Last month, New Jersey asked the US Supreme Court to decide whether state or federal authorities have jurisdiction over sports betting on prediction market platforms.
