Utah Sues Kalshi Over Alleged Illegal Gambling, Seeks to Block Sports Prediction Markets

Utah has sued prediction markets platform Kalshi for allegedly offering illegal online gambling through certain markets on its platform, including sports event contracts. The state is seeking injunctive relief and also to recover profits the platform has made from bets wagered.

Utah Sues Kalshi For Allegedly Offering Illegal Online Gambling

At a press conference, Utah’s Attorney General Derek Brown announced that the state had filed a civil action against the prediction markets platform for illegal online gambling. The state also named two Susquehanna trading firms as defendants, marking the first action against prediction market makers.

Utah becomes the 11th state to file an action against prediction markets. The action also follows the court’s ruling against Kalshi in September, denying its motion for an injunction pending appeals, which cleared the way for Utah to bring the action against the platform.

The state is seeking injunctive relief against the prediction market, requesting the court to block access to Kalshi’s sports, politics, elections, and culture markets in the state. It has also asked the court to approve a geolocation provider to enforce this. Meanwhile, Utah is also seeking to recover profits that the platform has made from locals in the state.

Utah Governor Calls The Prediction Markets “Gambling”

In an X post, Utah’s Governor Spencer Cox called the top crypto prediction markets platform gambling. “Calling it something else doesn’t change what it is. We’ve held the line against gambling since statehood, and we’re not backing down,” he said.

The governor also applauded the state’s AG and his team for the action against the prediction markets platform. “They have our full support as they work to protect Utah families and hold these companies accountable,” he added.

At the press conference, the state AG had also called out prediction markets like Kalshi. “These companies, they’re not your friends. They’re not helping you invest. They’re not providing you with insight or opportunity. Frankly, they are engineered to do one thing and one thing alone, and that is: Empty your wallet,” he said.

Legal expert Daniel Wallach noted that Kalshi will likely remove the case to federal court as early as today in a bid to forestall an immediate preliminary injunction in state court. He added that removal will give the parties time to litigate the remand issue.