Utah Sues Kalshi, Seeks Up to $60 Million Over Illegal Gambling Claims

Key Highlights

On October 20, Utah Attorney General Derek Brown announced a new lawsuit against the prediction market operator Kalshi, accusing it of offering illegal gambling in violation of state law.

Utah Files Lawsuit Against Kalshi & Trading Groups

Utah is the 10th state to file a lawsuit against Kalshi over illegal gambling claims. The Beehive State is seeking between $30 million and $60 million in profits allegedly earned from Utah residents. The case also names two Susquehanna trading groups and accuses the defendants of violating state laws on sports betting and online gambling since 2024.

The lawsuit covers betting tied to sports, elections, politics, culture, and conventions. Utah officials want those activities stopped within the state rather than collecting money from the companies involved. Brown said the final amount sought will depend on evidence obtained during discovery.

Brown’s decision to file a lawsuit against Kalshi follows several months of legal discourse and similar lawsuits involving prediction market companies. Nevada, New York, and Connecticut have also sued Kalshi, among others, with many states arguing they should be able to enforce their own sports betting laws rather than the Commodity Futures Trading Commission (CFTC). Utah is seeking an outright ban on prediction market contract trading.

“Effectively, Kalshi bet today that Utah would not enforce its gambling laws,” said AG Brown. “Well, we are enforcing it, and so on that point, Kalshi’s now lost their bet.”

Utah has been involved in a contentious legal battle with Kalshi for several months now, while other cases have given the state legal precedent to move forward with a lawsuit. On August 28, a federal appeals court ruled in favor of states, saying they had authority to regulate prediction markets under their own gambling laws.

Utah Seeks Geolocation Restrictions & Gambling Enforcement

Beyond the financial demand, Utah is asking for geolocation measures that would block people in the state from using the Kalshi app. Such a requirement would address access to the platform, which officials say offers betting activities prohibited under Utah law. In August, Nevada asked Kalshi to enforce similar geofencing measures to block access for its residents.

The lawsuit follows a legal battle between Kalshi and state officials. Kalshi previously sued Utah over its efforts to enforce gambling restrictions against the prediction market. In August 2026, a federal judge ruled that Utah could enforce its anti-gambling laws against Kalshi and similar platforms. AG Brown is seeking a court order against activities he says violate state law, along with the return of profits allegedly generated through Utah customers.

The claims have not been resolved in the filed case. The amount of money at issue and the requested restrictions will be addressed as the legal proceedings move forward.

Attorney General Raises Addiction Concerns & Potential Criminal Investigations

Brown also raised concerns about the negative impacts of betting apps, particularly among young men. He said gambling addiction can harm mental health and relationships, and argued that these platforms encourage users to spend money rather than build financial opportunities. More than 33,000 Utahns had accounts with Kalshi as of February 2026, according to data shared by the state.

The AG connected Utah’s gambling ban to the state’s efforts to protect families. His comments focused on people who may be struggling to control their betting, as well as the consequences their behavior can have on those around them.

When asked whether Kalshi could face criminal charges, Brown declined to discuss possible criminal investigations.