Utah Calls Foul on Kalshi as Prediction Markets Enter the Court

Utah has filed a civil enforcement action against prediction markets platform Kalshi, alleging that certain markets, including sports event contracts, constitute illegal online gambling. The state is seeking injunctive relief to block access to Kalshi’s sports, politics, elections and culture markets in Utah.

At a press conference, Utah’s Attorney General Derek Brown announced that the state had filed the civil action against the platform. Utah also named two Susquehanna trading firms as defendants. The filing is Utah’s first action against prediction market makers, making the state the 11th to file an action against prediction markets.

The lawsuit follows a September court ruling that denied Kalshi’s motion for an injunction pending appeals, clearing the way for Utah to bring the case. Utah is also seeking approval of a geolocation provider to enforce the requested block on the platform’s markets.

In addition to restricting Kalshi’s operations in the state, Utah is asking the court to recover profits the platform has made from bets wagered.