Utah files criminal charges against Kalshi and two co-founders
publishers 17articles 18first reported 29 Oct, 01:10 UTCdeveloping since 29 Oct · 4 editions
Utah filed 14 criminal charges against prediction-market operator Kalshi and co-founders Tarek Mansour and Luana Lopes Lara on Wednesday, accusing them of violating the state’s gambling ban and profiting from illegal activity.
The charges follow a federal judge’s rejection of Kalshi’s attempt to prevent Utah from applying its anti-gambling laws to the company. Utah Attorney General Derek Brown said Kalshi continued operating in the state despite that ruling.
“Gambling is illegal in Utah, whether you place the bet, run the game, or promote it,” Brown said. “Calling it a ‘prediction market’ doesn’t change what it is, and being federally registered doesn’t put a company above the law.”
Kalshi called the prosecution a “crazy overreach” and accused Utah of playing politics. The company said it would challenge the charges in court. Kalshi maintains that its federally regulated event contracts fall exclusively under federal jurisdiction and are not subject to state gambling laws.
The case is part of broader litigation over whether prediction markets are governed solely by the federal Commodity Futures Trading Commission or can also be restricted under state gambling laws. Courts in different jurisdictions have issued conflicting rulings, and New Jersey has asked the U.S. Supreme Court to review a related case.
HOW THIS STORY WAS MADE
Written from 8 articles, 2 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 18 h after the record first saw the story; the editor kept it as written.
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- Source articles
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- Given to the writer
- 8, 2 with the article's own text
- Independent newsrooms
- 8
- This version written
- 18 h after the record first saw the story
- Second model (editor)
- kept as written
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- passed
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- none
WHAT THE EDITOR DID
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