Utah targets Kalshi for $61M over alleged illegal gambling

The October 20 complaint, filed in Utah’s Third District Court, names Kalshi alongside two Susquehanna International Group trading firms. State officials accuse these entities of acting as counterparties to customer positions, effectively operating a gambling enterprise. According to the filing, Utah-linked accounts placed over three billion wagers, resulting in an estimated $30.6 million to $61.2 million in fees collected by the platform. The state also claims that approximately 32,000 verified Utah-based users lost roughly $5.5 million through individual bets.

Attorney General Brown characterized the operation as a public nuisance, demanding that the court impose strict geolocation measures to block local access. While Kalshi spokesperson Jacki McGavick argued that the exchange is a federally regulated derivatives market overseen by the Commodity Futures Trading Commission, Utah maintains its authority to enforce anti-gambling statutes. This legal battle follows a federal district court ruling in August where Judge Robert Shelby rejected Kalshi’s argument that federal law preempts state gambling regulations. With an appeal pending in the Tenth Circuit, the state is moving forward with this separate proceeding to recover profits and shutter access to contracts covering elections, sports, and cultural events.