Utah Seeks $61.2 Million From Kalshi

Utah Attorney General Derek Brown filed a new lawsuit against prediction market operator Kalshi, one of its subsidiaries, and two Susquehanna trading firms. The complaint was submitted on October 20 to the Utah Third District Court. The state argues the companies violated its gambling laws and seeks restitution and financial penalties of up to $61.2 million.

According to the lawsuit, Kalshi earned between $30.6 million and $61.2 million in commissions from accounts in Utah. Total trading through those accounts reached $3 billion. The filing states that at least 32,000 state residents used the platform.

The state wants Kalshi to stop offering contracts on sports, politics, elections and cultural events to users in Utah and to geographically restrict access to the platform. The attorney general's office also asks that profits allegedly obtained from illegal transactions be recovered. Brown's office claims Kalshi began offering markets to Utah users in September 2024 and knew this was against the law.

Kalshi has said it will not change its position. The company maintains that it is a federally regulated financial exchange operating under CFTC oversight and that no state has veto power over it. The dispute flared again after a federal judge ruled in Utah's favor in August. Judge Robert J. Shelby found that the Commodity Exchange Act does not prevent the state from enforcing its gambling laws against sports contracts.