Utah Attorney General Derek Brown files suit against Kalshi labelling it ‘the manager of a back-alley gambling den’
Utah's attorney general has sued prediction market Kalshi, seeking to stop it operating in the state, disgorge profits and secure restitution over what the complaint calls illegal gambling.
Utah Attorney General Derek Brown filed suit against prediction market operator Kalshi on October 20, arguing that its yes/no event contracts amount to illegal gambling rather than financial trading. The complaint seeks to halt Kalshi's operations in the state and to recover damages for harm allegedly caused since at least September 2024.
The filing describes Kalshi's conduct as a public nuisance and compares the company to the operator of a back-alley gambling den. Brown's office estimates Kalshi handled between $30.6m and $61.2m in wagers through Utah-linked accounts, with resident losses of roughly $5.5m. It asks the court to order the company to give up profits and pay restitution. The suit says the bets are indistinguishable from those offered by traditional sportsbooks, and cites a recent federal court ruling rejecting KalshiEx's argument that it is not bound by Utah law.
Kalshi said it operates as a federally regulated financial exchange comparable to the stock market, adding that it answers to federal law and that no single state should hold a veto over it.
