Why It Matters
Utah Attorney General Derek Brown filed a lawsuit seeking to stop Kalshi from accepting wagers from Utah residents. The complaint argues that the exchange violated Utah law and the state Constitution, which bans gambling in all forms.
What Happened
Brown filed the case Tuesday in Utah’s 3rd District Court. The Attorney General’s Office is seeking damages, restitution and profits it says Kalshi acquired unlawfully.
The complaint alleges that Kalshi hosts and facilitates gambling events, accepts wagers from Utah accounts and collects a fee on each transaction. It describes the company’s conduct as a “brazen pattern of unlawful conduct” and alleges gambling-related harm to Utahns’ mental health.
The office says Kalshi began offering gambling bets to Utah residents as early as September 2024. Kalshi did not immediately respond to a request for comment Tuesday.
The state’s case follows a federal order rejecting Kalshi’s argument that it did not have to comply with Utah law. Kalshi appealed that ruling, and the federal lawsuit remains ongoing.
Brown said Utah is pursuing a civil case rather than criminal charges and is concentrating on Kalshi for now. “Utah has said no to gambling since statehood in 1896, and that didn’t change when betting moved onto cellphones,” Brown said.
By the Numbers
$30.6 million to $61.2 million — estimated fees the Attorney General’s Office says Kalshi made from wagers placed by Utah accounts as of Monday
$0.01 to $0.02 — fee Kalshi allegedly takes per wager
More than $3 billion — estimated lifetime wagers placed by Utah accounts on Kalshi
More than 32,000 — verified Kalshi users in Utah
More than $1 million — amount Utah accounts invested on the exchange
Zoom Out
The lawsuit places Kalshi’s prediction-market activity within Utah’s longstanding constitutional prohibition on gambling. The dispute also spans state and federal courts: Utah is pursuing its own civil claims while Kalshi appeals the federal ruling addressing whether state law applies to its operations.
What’s Next
Utah’s lawsuit will proceed in 3rd District Court, where the state is seeking tens of millions of dollars in damages along with restitution and allegedly unjustly acquired profits. The related federal case remains active, and Brown said Utah can enforce its regulations against Kalshi.
“Effectively, Kalshi bet today that Utah would not enforce its gambling laws. Well, we are enforcing it. So on that point, Kalshi has now lost their bet,” Brown said.