By Basant El-Faramawy
Utah has filed criminal charges against prediction market operator Kalshi and its two co-founders, escalating a legal battle over whether state gambling laws apply to federally regulated prediction markets.
Felony charges allege gambling violations
The charges, announced Wednesday, include 13 counts of violating Utah’s prohibition on gambling and one count of profiting from illegal activity. The state’s charging documents name Kalshi, Chief Executive Officer Tarek Mansour, and Chief Operating Officer Luana Lopes Lara. Utah Attorney General Derek Brown said the company continued to operate in Utah despite a federal court ruling that the state’s gambling laws apply to it.
Kalshi calls charges political overreach
In a statement, Kalshi described the charges as a “crazy overreach” and accused Utah of “playing politics.” The company said it would challenge the case in court, citing a previous legal victory in Arizona. Kalshi maintains that prediction markets fall exclusively under federal jurisdiction and are not governed by state gambling statutes.
The case is part of a broader conflict spreading across roughly 20 states, with analysts predicting the U.S. Supreme Court will ultimately resolve the regulatory dispute.
