US government asks court to halt Utah's case against Kalshi

The US government and the Commodity Futures Trading Commission (CFTC) filed an emergency motion in the U.S. District Court for the District of Utah, asking it to halt the criminal and civil cases the state has brought against Kalshi, the prediction market operator. The motion was filed on October 29. It is part of a lawsuit the US and the CFTC filed on October 26 against the State of Utah and Attorney General Derek Brown. Kalshi is not a party to that lawsuit.

The Utah Attorney General's Office filed an indictment dated October 28, one day earlier, naming KalshiEX LLC, CEO Tarek Mansour and COO Luana Lopes Lara as defendants in the Third District Court in Salt Lake County. The charges include one second-degree felony, twelve counts of promoting online gambling, and one class A misdemeanor. According to the affidavit the prosecution relies on, an undercover agent opened a Kalshi account on September 13 using a Utah address, a phone number and a bank card. Between September 13 and 24, the agent placed twelve bets within the state, ranging from $4 to $30, on NFL, college football, MLB, MLS and NHL events. No arrest warrants were requested. The founders were summoned to give statements.

Brown said a federal court had ruled that Utah's gambling laws apply to Kalshi. He argued that Kalshi continues to accept bets, which he said is illegal. Kalshi rejected the charges, calling the case "a crazy overreach," and said Utah was engaging in politics. The company said it wants the case halted in court, as it has done in Arizona. Arizona became the first state to bring criminal charges against Kalshi this year.

Federal Judge Robert J. Shelby has not yet ruled on the motion. In an order dated October 30, he scheduled a hearing and scheduling conference for Friday, November 6 at 1:00 p.m. in Courtroom 3.100. The charges are allegations and have not yet been confirmed by the court.