# Utah Sues Kalshi Over Alleged Gambling, Seeks to Halt State Markets

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/36292
Published: 2026-10-21T03:39:43.000Z
Updated: 2026-10-21T03:39:43.000Z
Section: Regulation

> The state seeks to recover up to $60 million and says Kalshi has served more than 32,000 verified Utah users.

Utah sued prediction market operator Kalshi and its affiliates on Oct. 20, alleging illegal gambling and asking a court to stop several categories of event contracts for state residents.

Utah Attorney General Derek Brown’s civil complaint says Kalshi has served more than 32,000 verified users in the state. Utah argues that the activity violates its gambling ban and constitutes a public nuisance. The state is seeking to recover up to $60 million tied to the challenged activity.

The proposed restrictions cover contracts linked to sports, elections, politics and culture. Utah also wants geolocation measures to prevent residents from accessing the affected markets if the court grants its request. The lawsuit asks for a court order; the state’s allegations have not been decided in this case.

Kalshi has argued that its event contracts fall under the CFTC’s exclusive authority. In August, a federal judge rejected the company’s request to prevent Utah from enforcing its gambling restrictions. The new civil case asks a Utah court to decide what restrictions and financial relief, if any, to impose.