Utah files criminal charges against Kalshi and its founders under gambling laws

Utah has filed 14 criminal charges against Kalshi and its co-founders, alleging that the prediction-market company violates the state’s gambling laws. The case centers on Kalshi’s markets, where users can wager on the outcomes of events. Utah’s action escalates a dispute over whether those contracts are federally regulated prediction-market products or illegal gambling under state law. The conflict has also drawn in the federal government, which is seeking to halt Utah’s separate lawsuit against Kalshi.

The charges follow an investigation in which an agent for Utah’s attorney general placed $114 in wagers on Kalshi over two weeks. The agent made 12 bets, including one on an NHL game between the Utah Mammoth and Colorado Avalanche. Those wagers are presented as evidence that Utah residents could use the site to bet on sporting events. The case puts the state’s anti-gambling rules and Kalshi’s business model in direct legal conflict, with the company and its founders facing criminal allegations rather than only a civil challenge. The material available does not specify the individual charges or the founders’ response.