Utah Attorney General Derek Brown has initiated a civil lawsuit against the prediction market platform Kalshi, its affiliates, and two Susquehanna trading entities. The legal action alleges that the company has facilitated illegal betting activities within the state since 2024.
State officials are petitioning the court to force the companies to disgorge profits estimated between $30 million and $60 million. According to the Attorney General, Kalshi provided services to more than 32,000 users in Utah, which the state claims has resulted in substantial harm to its residents.
The legal conflict between the state and the platform escalated after Utah passed legislation classifying prediction market betting as gambling. In August, a judge ruled that federal regulations under the Commodity Futures Trading Commission do not preempt state gambling laws, a decision supported by an appellate court in September.
This case is part of a broader trend of state-level enforcement against prediction market platforms. While Arizona is pursuing criminal charges, other states including Michigan, Ohio, Kentucky, Nevada, Massachusetts, Wisconsin, and New York have filed civil lawsuits regarding similar alleged violations.
The dispute may ultimately reach the US Supreme Court, which is currently considering a petition from New Jersey regarding Kalshi. A ruling could clarify whether prediction markets fall under the jurisdiction of state authorities or the Commodity Futures Trading Commission.
