Utah prosecutors filed 14 criminal charges against prediction-market operator Kalshi and its two co-founders on October 28, accusing the company of violating the state’s ban on online gambling. The filing adds a criminal case to an ongoing legal dispute between Utah and Kalshi.

The case names Kalshi co-founders Tarek Mansour, the company’s chief executive, and Luana Lopes Lara, its chief operating officer. All three defendants face allegations, not findings of guilt.

Utah Alleges Illegal Gambling Promotion

Utah Attorney General Derek Brown filed 12 counts of online gambling promotion, one count alleging a pattern of unlawful activity, and one misdemeanor count of general gambling promotion. Thirteen of the charges are felonies under Utah law.

“Calling it a ‘prediction market’ doesn’t change what it is,” Brown said.

Kalshi rejected the charges, calling the prosecution a “crazy overreach” and saying Utah was “clearly playing politics.”

The charges were filed as Kalshi continued expanding access to its markets. On October 23, crypto wallet Phantom began offering Kalshi event contracts to US customers while limiting some categories in states where legal restrictions apply.

Undercover Trades Form Basis of Case

State investigators said an undercover agent created a Kalshi account using a Utah address, phone number, and debit card. After confirming that the agent was located inside the state, the agent placed 12 sports trades in September.

Court records show that the trades covered football, baseball, soccer, and hockey, with a total of $114.87 at risk. Prosecutors allege that Kalshi collected fees from transactions that violated Utah’s gambling rules. The claims remain before the court.

The filing is available in a court document published at

CFTC Sues Utah

On October 27, the Commodity Futures Trading Commission sued Utah and Brown, seeking to stop state enforcement against federally registered prediction exchanges. The agency said federal law gives it authority over the contracts offered by Kalshi.

Utah filed a separate civil lawsuit against Kalshi on October 20. The state asked a court to block Kalshi’s event trading in Utah and recover profits. A federal judge had previously declined to stop Utah from enforcing its laws.

The competing lawsuits leave the status of Kalshi’s Utah event contracts subject to parallel federal and state proceedings: the CFTC is challenging state enforcement, while Utah is pursuing both civil remedies and criminal charges.

Dispute Extends Beyond Utah

The broader dispute also involves professional sports. On October 26, the NBA announced a data-sharing agreement with the CFTC and named Kalshi and Polymarket as preferred prediction exchanges. The NFL has supported state oversight.

Arizona filed criminal charges against Kalshi in March, but a federal judge later paused that case. In Utah, the defendants have received summonses rather than arrest warrants.

Original source: CoinCentral.