Utah Attorney General Seeks $61.2 Million From Kalshi for Alleged State Gambling Law Violations
Utah sues Kalshi for allegedly violating gambling laws, seeking up to $61.2 million and a block on event contracts.Summary
Utah Attorney General Derek Brown has filed a complaint against prediction market operator Kalshi, an affiliate, and two Susquehanna trading firms in Utah's Third District Court. The suit, submitted on October 20, accuses them of violating state gambling laws and seeks up to $61.2 million in restitution plus other financial remedies. It also aims to stop Kalshi from offering event contracts on sports, politics, elections, and culture to Utah residents, impose geographic restrictions, and recover profits. Kalshi allegedly generated between $30.6 million and $61.2 million in fees from $3 billion in trades by at least 32,000 Utah residents since September 2024, despite knowing the activity violated state law. Utah has opposed gambling since 1896. Kalshi defends itself, claiming its federal regulation as a CFTC-regulated derivatives exchange preempts state law. The complaint follows an August federal court ruling by Judge Robert J. Shelby that the Commodity Exchange Act does not preempt Utah's gambling laws against Kalshi's sports event contracts. This decision limits federal preemption and affirms states' authority to enforce anti-gambling statutes, with similar issues arising in Ohio and Tennessee.
(Source：Sccg Management)