Utah Speeds Up CFTC Case; Underdog Sues Missouri

The legal battle between Utah and prediction market operators is growing tougher. At the November 6 status conference, Federal Judge Robert J. Shelby set an expedited schedule for the CFTC's request for a temporary restraining order and preliminary injunction.

Utah will file its motion to dismiss the case by November 10 and respond to the CFTC's emergency relief request on November 11. The remaining filings will be submitted between November 16 and 19, and the hearing will take place on November 20.

In October, the state filed criminal charges against Kalshi and its founders, Tarek Mansour and Luana Lopes Lara. Shelby had previously ruled against Kalshi in a separate case over the authority to regulate sports event contracts, securing the first final merits decision the state has obtained against an operator in such cases.

Susquehanna is opposing the preliminary injunction request in Utah's lawsuit against Kalshi and two market makers. The firm rejects Utah's characterization of market makers as bookmakers. According to its filing, market makers do not set odds or accept customers' bets. They provide liquidity only by placing orders and trading at market prices. Although the company argues that its activities are independent of Kalshi, its objection refers to Kalshi's arguments, and the parties share the same lawyers.

Utah is not alone. Underdog has sued Missouri officials, making it the eighth state where the company has launched a legal challenge. Dozens of states have also supported gambling regulators in the federal appeals process. Kalshi, meanwhile, faces a new lawsuit over its partnership with a tribe in Oklahoma.