Utah Files 14 Charges Against Kalshi and Its Founders

The state of Utah has filed 14 charges against prediction market operator Kalshi and its founders, Tarek Mansour and Luana Lopes Lara. The case is part of the state's push to enforce its gambling laws against sports event contracts offered on the exchange, which operates under federal oversight.

The charges are based on an undercover investigation carried out by an agent working for the Utah Attorney General's Office. The agent opened an account using an address in Utah, a local phone number, and a bank card issued in Utah. The platform required the agent to verify their location before trading. The agent also used the platform from Salt Lake and Davis counties.

Over roughly two weeks, the agent placed 12 sports bets, risking a total of $114.87. The agent won six and lost six, closing with a net loss of $25.10. The bets covered professional and college football, Major League Baseball, Major League Soccer, and an NHL game involving the Utah Mammoth.

Prosecutors argue that these transactions show Kalshi continued to offer contracts to Utah residents despite gambling being prohibited in the state. The charges include serious felony counts tied to promoting online gambling, a pattern of criminal activity allegation, and a misdemeanor count of general gambling promotion.

No arrest warrants have been issued for Mansour or Lopes Lara. Both have been summoned to respond in the Third District Court in Salt Lake County. Utah Attorney General Derek Brown said Kalshi has kept operating in the state despite an earlier federal court ruling that allowed Utah to enforce its gambling law against the company.