Utah Attorney General Sues Kalshi, Seeking to Block Bets From State’s Residents

SALT LAKE CITY — Utah Attorney General Derek Brown sued the prediction market company Kalshi on Tuesday, alleging that it has taken bets in the state in violation of Utah law and the state constitution’s ban on gambling.

The civil complaint, filed in 3rd District Court, asks a judge to stop Kalshi from accepting wagers from people in Utah. It also seeks to make the company hand over what the complaint calls unjustly acquired profits, along with restitution for other harms the court finds appropriate. The suit says the company’s conduct has damaged Utah residents, including their mental health.

The state’s complaint likens Kalshi to a gambling-den operator that hosts bets and collects a cut. The attorney general’s office estimates the company has earned between about $30.6 million and $61.2 million in fees from Utah accounts as of Monday. The estimate rests on a fee of one to two cents per wager and more than $3 billion wagered by Utah accounts over the platform’s lifetime. The complaint says the company has more than 32,000 verified Utah users and that the true figure is likely higher.

At a news conference at the Capitol, Brown said Utah has barred gambling since statehood in 1896. He said “Kalshi has now lost their bet” on whether the state would enforce its laws. He said the profit estimate could grow as discovery turns up more information.

The state says Kalshi began offering bets to Utahns as early as September 2024, despite knowing they were illegal in Utah. The complaint notes that a recent federal order rejected Kalshi’s argument that it need not follow state law. The company has appealed, and the federal case is continuing.

Kalshi spokesperson Jacki McGavick said in a statement that the company is a federally regulated exchange overseen by the Commodity Futures Trading Commission. She said Kalshi answers to federal law and that no single state should have a veto. She said the new suit does not affect the federal litigation.

Brown said his office is focusing on a civil case for now and would not comment on any criminal investigation. He said the suit is part of a broader inquiry and that his office is focusing on Kalshi for now. He urged other companies operating in Utah to read the complaint and follow state law.