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Utah Charges Kalshi and Its CEO with Illegal Gambling Promotion
Confirmed
In Short: The charges include one count of pattern of illegal activity, a second-degree felony, 12 counts of online gambling promotion, and one class A misdemeanor.
On October 28, 2026, Utah Attorney General Derek Brown's office filed 14 criminal charges in state court in Salt Lake City against Kalshi (KalshiEx LLC), its CEO Tarek Mansour, and COO Luana Lopes Lara.
The charges include one count of pattern of illegal activity, a second-degree felony, 12 counts of online gambling promotion, and one class A misdemeanor.
According to the complaint, Kalshi collected between $30.5 million and $61.1 million from Utah users between February and mid-October 2026.
A Utah investigator spent $114.87 over two weeks on sports event contracts, including wagers on NFL, MLB, college football, and Major League Soccer matches.
The case escalates Utah's dispute with Kalshi over whether its event-based contracts violate state gambling laws.
Attorney General Derek Brown emphasized that gambling is illegal in Utah, whether it is placed, run, or promoted, and that calling it a 'prediction market' does not change its nature.
Kalshi, however, called the charges a 'crazy overreach' and said the company looked forward to challenging them in court.
The CFTC sued Utah on October 27 to block state enforcement, arguing that the commission has exclusive jurisdiction over commodity derivatives.
A federal judge already blocked Arizona’s nearly identical criminal case against Kalshi in May, but Utah is proceeding anyway.
Critics argue that these platforms are merely digital gambling, which remains illegal in some states.
The civil complaint estimates Kalshi collected between $30.5 million and $61.1 million from Utah users between February and mid-October 2026.
The state's latest move comes after Brown sued Kalshi and two Susquehanna trading firms last week, accusing them of running an illegal gambling business in the state.
What this adds
The civil complaint estimates Kalshi collected between $30.5 million and $61.1 million from Utah users between February and mid-October 2026.
The case has significant implications for investors and platforms like Robinhood, which rely on Kalshi as a key partner.
What's confirmed
- The case includes one count of pattern of illegal activity, a second-degree felony, 12 counts of online gambling promotion, and one class A misdemeanor.
- The CFTC sued Utah on October 27 to block state enforcement.
- On October 28, 2026, Utah Attorney General Derek Brown’s office filed 14 criminal charges in state court in Salt Lake City against Kalshi (KalshiEx LLC), its CEO Tarek Mansour and COO Luana Lopes Lara.
- “Gambling is illegal in Utah, whether you place the bet, run the game, or promote it. Calling it a ‘prediction market’ doesn’t change what it is, and being federally registered doesn’t put a company above the law,” Attorney General Derek Brown said in a statement.
- “This is a crazy overreach; Utah is clearly playing politics. We look forward to putting a stop to this in court, just like we did in Arizona,” a company spokesperson said in a statement to Fox 13 News.
What's still developing
- Prediction markets just had their coming-out party, and the numbers are staggering. $3,996,191,303 has traded on the “World Cup Winner” market as of July 6, 2026, per Polymarket, a single contract that has quietly… Kalshi's grip on NFL prediction-market volume looks overwhelming until Needham adjusts for how professional traders inflate exchange counts, and that one tweak changes the stakes for DraftKings stock in ways the headline number hides.
- The charges say Kalshi took fees of 3 cents to 78 cents per transaction.
- According to New York state data, revenue from online sports wagering has plunged during the NFL playoff season, a period typically booming for betting.
- Utah just hit Kalshi's two founders with felony gambling charges, and every investor watching Robinhood needs to understand what a state criminal case against a key partner actually means for the platform's future.
- Eggerman wagered $5 that Utah would win by more than 27.5 points, according to the charging documents.
- One trade involved Utah’s football game against Utah State on September 19.
- “Calling it a ‘prediction market’ doesn’t change what it is, and being federally registered doesn’t put a company above the law.” Kalshi, for its part, called the charges a "crazy overreach." Ben Whedon is the Chief Political Correspondent at Just the News.
- Kalshi CEO Tarek Mansour recently told Reason 's Nick Gillespie there's a "big group" of lawmakers in both parties who are "actually" in favor of prediction market platforms.
- All of Eggerman's personal user information identified him as a Utah resident with a local phone number and bank account through a "Utah-based banking establishment." Over two weeks, Eggerman spent $114.87 on a dozen wagers spread across the NFL, MLB, a local college football game, and a Major League Soccer match involving Utah-based Real Salt Lake.
- He also said the operation causes “significant and substantial ongoing harm” to Utah residents and directed people with gambling problems to the 1-800-MY-RESET helpline.
- Utah has already sued Kalshi over claims that it’s operating illegally in the state, joining several other states, including New York, Nevada, New Mexico, Washington, Connecticut, and others, in taking legal action against the company.