Trump administration sues Utah over Kalshi prediction market ban
Summarised from 3 outlets · Updated 29 Oct, 02:21 · Archive
Utah has filed criminal charges against prediction market operator Kalshi and two executives, chief executive officer Tarek Mansour and chief operating officer Luana Lopes Lara. The charges include 13 counts of violating Utah's prohibition on gambling and a charge involving profiting from illegal activity. This follows a federal judge's earlier rejection of Kalshi's attempt to prevent Utah from enforcing its strict anti-gambling laws.
Utah Attorney General Derek Brown said Kalshi has continued operating in the state despite the court 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." The felony charges carry the possibility of jail time, though the attorney general's office did not immediately specify what penalties it would seek.
In response, Kalshi called the charges a 'crazy overreach' and said Utah was playing politics, adding it looked forward to stopping the action in court as it had done in Arizona. Meanwhile, the Trump administration's Commodity Futures Trading Commission has sued Utah to block the state's efforts to shut down CFTC-registered contract markets, arguing that federal law preempts state law. Utah has become a flashpoint in an expanding clash between states and the federal government over regulating prediction markets, with the dispute appearing headed towards the US supreme court.
How it is being reported
- Kalshi, co-founders hit with criminal charges in US state of UtahThe charges come after a federal judge ruled that Utah could enforce its anti-gambling laws against prediction markets.Al Jazeera · 29 Oct, 02:33
- Utah files criminal charges against prediction market Kalshi and company co-foundersFirm calls charges, which include violating state gambling ban and profiting from illegal activity, ‘crazy overreach’ Utah on Wednesday filed criminal charges against prediction market operator Kalshi and two of its executives, months after a federal judge rejected Kalshi’s effort to prevent Utah from enforcing its strict anti-gambling laws against the activity. The felony charges could represent a new tactic in how states try to assert regulatory authority over the fast-expanding activity, a clash that appears headed to a showdown at the US supreme court. Continue reading...Guardian World · 29 Oct, 01:56
- Trump admin sues Utah to save Kalshi from the state's total ban on gamblingUS agency has sued 10 states for trying to stop gambling on prediction markets.Ars Technica · 28 Oct, 19:30
In this story: Kalshi · Utah · Commodity Futures Trading Commission · Derek Brown · Tarek Mansour · Luana Lopes Lara
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