Utah Sues Kalshi to Block Event Contracts and Recover Millions in Fees

Utah sued Kalshi on Oct. 20, seeking to block its event contracts and recover fees the state alleges came from illegal gambling by accounts with Utah addresses.

The state is seeking roughly $30 million to $60 million in related proceeds. The range is an estimate, not a court award. The case involves more than 32,000 Utah users.

The complaint seeks to stop Kalshi from offering contracts tied to sports, elections, politics, culture and celebrity-related events in Utah. It also seeks restitution and other financial relief from Kalshi, its affiliates and two Susquehanna trading firms. Filing the lawsuit does not itself impose the requested restrictions.

Kalshi disputes Utah’s allegations. The company argues that its event contracts trade on a CFTC-regulated exchange governed by federal derivatives rules rather than state gambling laws.

Kalshi sued Utah in February to prevent enforcement of the state’s restrictions. A court sided with Utah in August, and an appeals court denied Kalshi’s request for interim relief in September. The appeal remains pending.