Utah sues Kalshi and asks court to block it from the state

Utah has sued prediction market Kalshi, arguing that its sports, election and other event contracts are gambling banned under state law. Attorney General Derek Brown filed the 63-page complaint in the 3rd District Court in Salt Lake City on 20 October, according to the Deseret News. Market maker Susquehanna International Group and a related entity are also named.

The state wants a court order stopping the companies from operating in Utah, enforced through a court-approved geolocation provider. It also seeks disgorgement of profits and restitution. Brown declared gambling a “public nuisance” in the filing.

The Deseret News reported that Kalshi charges a fee of one to two cents per contract. Utah estimates the company earned between $30.5m and $61.1m from Utah accounts. The state says more than 32,000 Utahns had verified accounts as of February 2026, and that Kalshi advertised itself as “legal in all 50 states”.

Why it matters

The case follows a federal ruling that went against Kalshi. In February, Kalshi sued Utah in federal court, arguing that its CFTC registration overrides state gambling law. In August, US District Judge Robert J. Shelby ruled that Utah’s laws apply to Kalshi’s sports contracts and are not pre-empted. Utah cited that ruling when it moved to state court.

Kalshi says it is a federally regulated exchange and that “no single state should have a veto over it.” The Deseret News counts at least nine states taking legal action against prediction market platforms.

For Gibraltar, the case is relevant because the territory has positioned itself as a licensing home for prediction markets. It licensed its first operator in April 2026 and published a dedicated framework in July. US state hostility could push more platforms to look for regulated bases outside the US, but it also raises the compliance bar for any operator or affiliate touching US users.

What happens next

Kalshi’s spokesperson said the state case does not affect its ongoing federal litigation. The court will now decide whether to grant Utah’s request to block Kalshi while the case proceeds.