Utah Attorney General Derek Brown filed criminal charges against prediction market Kalshi and co-founders Tarek Mansour (CEO) and Luana Lopes Lara (COO) in a Salt Lake City court. The complaint says Kalshi facilitated sports wagers, including on NFL games, placed by an undercover law enforcement officer.
The filing lists 12 counts of online gambling promotion, one count of general gambling promotion and one count of pattern of unlawful activity. It came a day after the Commodity Futures Trading Commission sued to block Utah's civil enforcement actions, arguing prediction markets fall under federal jurisdiction.
In August a federal judge ruled Utah could apply its gambling laws to online prediction markets. The case escalates the fight over whether states or federal regulators control sports event contracts.