Utah Attorney General Sues Kalshi, Seeks $30M–$60M in Profits
Derek Brown alleges Kalshi facilitated illegal bets from 2024 and asks court to disgorge profits.
Key Takeaways
- Utah AG Derek Brown sued Kalshi, affiliates and two Susquehanna trading companies on Oct. 20, 2026, seeking about $30 million to $60 million in profits.
- State officials allege Kalshi offered services to more than 32,000 Utah users and facilitated illegal event contracts from 2024.
- Kalshi says it is a federally regulated exchange overseen by the Commodity Futures Trading Commission and is pursuing federal litigation.
- A Utah judge ruled in August 2026 that CFTC law does not preempt state gambling statutes, and an appellate court denied an injunction in September 2026.
- Arizona pursues criminal charges; Michigan, Ohio, Kentucky, Nevada, Massachusetts, Wisconsin and New York have filed civil suits against prediction-market firms.
Utah Attorney General Derek Brown filed a civil lawsuit on Oct. 20, 2026, against Kalshi, affiliated entities and two Susquehanna trading companies, alleging the prediction markets platform facilitated illegal betting in Utah since 2024 and asking a court to return about $30 million to $60 million in profits. Brown told reporters the companies served more than 32,000 users in the state and said officials have petitioned the court to stop a range of event wagers in Utah.
The state's claims and requested relief
Brown said in a Tuesday briefing that Utah is seeking disgorgement of profits and an injunction. >"Under Utah law, I have determined that this operation is causing a significant and substantial ongoing harm to a significant number of Utahns," Brown said. He added the filing asks the court to "stop sports, elections, politics, culture and mention bets here in Utah." The complaint names Kalshi, its affiliates and two Susquehanna trading companies as defendants.
Kalshi response and federal litigation
Kalshi issued a statement to Cointelegraph through spokesperson Jacki McGavick, reiterating the company's position in ongoing federal proceedings. >"Kalshi is a federally regulated financial exchange, like the stock market," McGavick said. She said customers trade with each other and set prices, and that Kalshi answers to federal law under Commodity Futures Trading Commission oversight. The company noted the state court action does not affect its ongoing federal litigation.
Kalshi sued the state of Utah in February 2026 after lawmakers passed legislation treating betting on prediction markets as gambling under Utah law. In August 2026 a state judge ruled federal Commodity Futures Trading Commission law does not preempt state gambling statutes. An appellate court denied Kalshi's request for an injunction in September 2026, blocking the platform from operating in Utah while appeals continue.
Wider legal context in the United States
States have taken varied approaches to prediction markets. Arizona remains the only jurisdiction pursuing criminal charges against Kalshi, while Michigan, Ohio, Kentucky, Nevada, Massachusetts, Wisconsin and New York have filed civil suits against one or more prediction market companies. The US Supreme Court is considering whether to accept a petition tied to New Jersey's case against Kalshi; that petition could determine whether state authorities or the CFTC have ultimate authority over event contracts. The NFL backed New Jersey authorities in a Supreme Court petition related to Kalshi's alleged sports bets.
Frequently Asked Questions
What relief is Utah seeking from Kalshi?
Utah is asking a court to return about $30 million to $60 million in profits and to enjoin certain event bets. The state's petition, filed Oct. 20, 2026, seeks disgorgement and an order to stop sports, elections, politics, culture and mention bets in Utah.
How many Utah users does the lawsuit allege Kalshi served?
The complaint alleges Kalshi offered services to more than 32,000 users in Utah. Attorney General Derek Brown cited that figure during a Tuesday press briefing.
What is Kalshi's legal position in response to the Utah lawsuit?
Kalshi contends it is a federally regulated financial exchange overseen by the Commodity Futures Trading Commission and says federal law governs its markets. Spokesperson Jacki McGavick told Cointelegraph the state court action does not affect Kalshi's ongoing federal litigation.
What prior court rulings affected Kalshi in Utah?
In August 2026 a state judge ruled CFTC law does not preempt Utah gambling laws, and in September 2026 an appellate court denied Kalshi's request for an injunction, blocking operation during appeal. Those rulings followed Kalshi's February 2026 suit after Utah reclassified prediction-market betting as gambling.
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About the author
Tessa Coleman
Betting Markets Correspondent
Tessa Coleman covers betting products and markets — sportsbook launches, odds and trading technology, and the fast-growing prediction-market space from regulated exchanges to event contracts. The stories lead with the product or the ruling, name the operators and platforms precisely, and translate trading jargon into what bettors can actually do. When a book reworks its pricing or a prediction market wins a license fight, Tessa Coleman explains the mechanics and the stakes.
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