SALT LAKE CITY — Utah Attorney General Derek Brown filed a civil lawsuit against prediction market operator KalshiEX LLC on Tuesday, alleging the company is running an illegal gambling enterprise targeting Utah residents.
The complaint, filed in state court, accuses Kalshi and affiliated entities of violating state anti-gambling statutes by allowing residents to place monetary bets on sporting events, political elections, and other real-world outcomes. State prosecutors also categorized the platform as an unlawful public nuisance that causes substantial and ongoing harm to consumers.
The lawsuit asks the court to issue an injunction prohibiting Kalshi from facilitating transactions within Utah, mandate an immediate halt to its local operations, and order legal relief and financial restitution.
“Kalshi runs an online casino in Utah and calls it a prediction market. That violates Utah law,” Brown said. “Not only do our state laws ban gambling, but Utah is one of only two states where gambling is also prohibited under the state constitution. For 130 years, Utah has been clear: Gambling has no place here, and we will enforce our laws.”
The state enforcement action follows months of federal litigation initiated by Kalshi. The company sued Utah leaders, including the governor and attorney general, in February, contending that the federal Commodity Exchange Act shielded its trading platform from state-level regulation.
In August, U.S. District Judge Robert Shelby granted summary judgment to Utah, ruling that the federal statute does not preempt or override the state’s constitutional and statutory bans on gambling.
Kalshi appealed the decision to the 10th U.S. Circuit Court of Appeals, which on Sept. 8 denied the company’s emergency bid to block Utah authorities from enforcing local anti-gambling laws while the case proceeds. That federal appeal remains pending.