Utah sues Kalshi over alleged illegal event contracts
The state seeks an injunction, restitution and recovery of profits from specified Utah wagers.
Utah Attorney General Derek Brown filed a lawsuit Tuesday seeking to stop Kalshi from offering specified event contracts to Utah users and to recover money the state says the business made from illegal gambling, Utah News Dispatch reported. The complaint was filed in 3rd District Court. [1]
The state asks for injunctions, restitution and recovery of profits. Those are requests to the court, not damages already awarded. Kalshi has argued that its federally regulated exchange falls under federal oversight rather than state gambling restrictions. [1]
The filing follows an August federal court ruling that allowed Utah to enforce its gambling laws against Kalshi. KUER reported that it had requested comment from the company on the new lawsuit. [2] The Attorney General's office says the U.S. Court of Appeals for the 10th Circuit denied Kalshi's request on Sept. 8 to block enforcement of Utah's laws while its appeal is pending. [4]
Sources
- Utah News Dispatch · Utah sues Kalshi over alleged illegal event contracts, October 20, 2026 utahnewsdispatch.com
- KUER · Utah sues prediction market site Kalshi, October 20, 2026 kuer.org
- Utah complaint · prayer for relief utahnewsdispatch.com
- Utah Attorney General: Utah sues Kalshi, alleging its prediction market is gambling attorneygeneral.utah.gov
This story was written by AI from the report by Utah News Dispatch, which has the full story. How we write stories.
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