Utah files criminal charges against Kalshi and its co-founders over online gambling promotion

OPENING
Utah files criminal charges against Kalshi and its co-founders over online gambling promotion.
KEY DETAILS
- Utah Attorney General Derek Brown filed criminal charges in state court on October 28, 2026 against prediction market operator KalshiEX LLC and its co-founders Tarek Mansour (CEO) and Luana Lopes Lara (COO).
- The charges consist of one second-degree felony count of pattern of unlawful activity, 12 third-degree felony counts of online gambling promotion and one class A misdemeanor count of gambling promotion.
- According to the charging documents, an undercover state agent using a Utah-based account placed wagers on 12 sports events through Kalshi in September 2026.
- The charges came a day after the US federal government sued Utah to block it from enforcing its anti-gambling laws against Kalshi, and a week after the attorney general filed a civil lawsuit against the company.
WHY IT MATTERS
It escalates the state-versus-federal fight over who regulates prediction markets. (Analysis, not a confirmed fact.)
IMPORTANT CONTEXT
- Kalshi operates as a CFTC-regulated exchange and argues its event contracts fall under federal, not state, jurisdiction; Reuters reported that the CFTC shares that position.
- Reuters noted that the jurisdiction question has divided federal appeals courts and the US Supreme Court has been asked to resolve it.
- The charges are allegations; none of the defendants has been convicted.
- This article is informational and is not financial advice. Digital assets are volatile.
SOURCE
- Primary / main source: https://www.investing.com/news/stock-market-news/utah-criminally-charges-kalshi-with-promoting-illegal-gambling-4981217
- Supporting: https://www.ksl.com/article/51642075/feds-sue-utah-over-attempt-to-ban-kalshi-ag-files-criminal-charges-in-response
- Supporting: https://www.fox13now.com/news/politics/utah-levels-criminal-charges-against-kalshi-and-some-of-its-executives
- Supporting: https://www.abc4.com/news/local-news/utah-criminal-charges-kalshi/
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