Kalshi, co-founders hit with criminal charges in US state of Utah

The US state of Utah has announced criminal charges against popular prediction market Kalshi and its two co-founders, accusing the platform and its executives of illegally promoting online gambling.

Utah Attorney General Derek Brown filed the charges against Kalshi, chief executive officer Tarek Mansour and chief operating officer Luana Lopes Lara on Wednesday, a day after US President Donald Trump’s administration sued the state to block its civil enforcement actions against the platform.

According to the criminal complaint filed in a Salt Lake City court, Kalshi facilitated an undercover law enforcement officer’s wagers on sports events, including games in the NFL.

The charges come after a federal judge in August ruled that Utah was entitled to enforce its stringent anti-gambling laws against online prediction markets, following a legal bid by Kalshi to block enforcement of the law.

The criminal 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.

Kalshi and Brown’s office did not immediately respond to requests for comment.

Utah has some of the strict prohibitions against gambling in the US, with its state constitution explicitly barring lawmakers from legalising the activity.

The charges mark an escalation in a showdown between US 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 enforcements actions against prediction markets, arguing that the platforms fall under federal jurisdiction.

The regulator announced the move after Utah last week filed a civil lawsuit accusing Kalshi of facilitating betting on sports, elections, politics and other outcomes in violation of anti-gambling laws.

Dozens of US states, led by both 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 US Supreme Court to rule on whether state or federal authorities have jurisdiction over sports betting on prediction market platforms.