Utah seeks up to $61.2M from Kalshi over event contracts
The October 20 complaint asks a court to bar sports and political contracts and recover fees
Key Takeaways
- The State of Utah filed suit on October 20 seeking $61.2 million from Kalshi and two Susquehanna firms and seeks additional monetary and injunctive relief.
- The complaint asks the court to prohibit Kalshi from trading sports and political event contracts within Utah and to disgorge related commissions.
- Court filings say Utah users traded about $3.0 billion on Kalshi, producing between $30.6M and $61.2M in commissions allegedly tied to illegal activity.
- Kalshi maintains it is supervised by the Commodity Futures Trading Commission (CFTC) and does not operate as a gambling entity.
- An August ruling by Judge Robert J. Shelby held that the Commodity Exchange Act does not stop Utah from applying its gambling laws to Kalshi’s sports contracts.
The State of Utah filed suit on October 20 against Kalshi and two Susquehanna firms in the Third Judicial District Court of Utah, seeking $61.2 million in damages plus additional monetary and injunctive relief. The complaint asks the court to prohibit Kalshi from trading contracts on sports and political events within the state and to disgorge profits from transactions it deems illegal.
Allegations on finances and scope of trading
According to legal filings cited by the Utah Attorney General, users from Utah traded roughly $3.0 billion, which generated Kalshi between $30.6 million and $61.2 million in commissions. The complaint seeks to recover those commissions and to block future activity tied to sports and political events in the state, including a request to bar contracts tied to [sports](/sports) outcomes.
Kalshi's defence and the legal issue in dispute
Kalshi rejects Utah’s claims and says it operates under the supervision of the Commodity Futures Trading Commission (CFTC) and not as a gambling entity. A Kalshi spokesperson said the firm is overseen by the CFTC, that customers trade against each other, and that prices are set in the negotiation process; the company pointed to federal oversight under [regulation](/regulation).
The dispute centres on whether states can apply their gambling laws to event contracts offered by federally regulated prediction markets. The complaint follows an August ruling by federal judge Robert J. Shelby, who sided with Utah and held that the Commodity Exchange Act (CEA) does not prevent the state from applying its gambling rules to Kalshi’s sports contracts.Regulation
Frequently Asked Questions
How much is Utah seeking from Kalshi and when was the suit filed?
Utah is seeking $61.2 million from Kalshi and two Susquehanna firms; the complaint was filed on October 20 in the Third Judicial District Court of Utah and also requests other monetary and injunctive remedies.
What trading volume does the complaint attribute to Utah users on Kalshi?
The complaint alleges that users from Utah traded approximately $3.0 billion, and that this volume generated between $30.6 million and $61.2 million in commissions to Kalshi, which the state seeks to recover.
What is Kalshi’s defence against Utah’s allegations?
Kalshi argues it is regulated by the Commodity Futures Trading Commission (CFTC), that customers trade with each other, and that prices are established during negotiations; the company says it is not a gambling operator.
What did Judge Robert J. Shelby rule in August that relates to this case?
In August Judge Robert J. Shelby ruled in favour of Utah, finding that the Commodity Exchange Act (CEA) does not prevent the state from enforcing its gambling laws against Kalshi’s sports contracts, a ruling the current complaint cites as background.
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About the author
Renata Quiroga
Betting Markets Correspondent
Renata Quiroga covers sports betting and prediction markets — sportsbook launches, odds technology, event contracts, and the regulatory calls that decide what can be bet on and where. The reports open with the product or the ruling, name operators and platforms precisely, and explain the mechanics without needless jargon. When a book enters a Latin American market or a prediction exchange lists a contested contract, Renata Quiroga reports what changes for the bettor.
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