Utah Attorney General Derek Brown announced a civil lawsuit against Kalshi, its affiliates and two Susquehanna trading companies, alleging that Kalshi had facilitated illegal betting in the state since 2024. Utah officials asked a court to stop several types of bets and order the companies to return about $30 million to $60 million in profits from allegedly illegal event contracts. Brown also alleged that Kalshi offered its services to more than 32,000 Utah users, causing significant losses.
In August, a judge ruled that federal commodities law did not override Utah’s gambling laws. An appellate court denied Kalshi an injunction in September, blocking it from operating during its appeal. Kalshi did not immediately respond to a request for comment on the new lawsuit.
