Utah Files Criminal Charges Against Kalshi And Its Founders
Jesse M. Cox Published 30/10/2026
The Utah Attorney General's Office has filed 14 criminal charges against prediction market site Kalshi and the company's founders. The charges were filed on October 28. The state alleges the Commodity Futures Trading Commission (CFTC)-regulated prediction market platform is promoting illegal online gambling in Utah. An undercover investigator placed 12 sports wagers on the platform. These charges come one day after the CFTC and the U.S. Department of Justice (DOJ) sued Utah to block state enforcement against Kalshi event contracts.
Also named in the criminal indictment are Kalshi co-founders CEO Tarek Mansour and COO Luana Lopes Lara. It's the first time individuals running a prediction market company have been included in such measures.
All gambling is against the law in Utah
At the heart of these criminal charges is being able to convince a judge that what prediction market sites are offering to the people of Utah is gambling. Almost all gambling is against the law in Utah. There is a constitutional ban on almost all forms of gambling.
The charging documents show that 13 of the 14 charges laid are felony counts. Specifically, the charges include 13 counts of violating the state's prohibition on gambling and another charge involving profiting off illegal activity. The felony charges carry the possibility of jail time.
Filing charges against the operators of the company is a new twist. It hasn't happened in any previous state government battles with prediction markets. A lawsuit can impose financial costs on a company. Criminal cases can lead to prosecution of individuals.
Brandon Amacher, director of Utah Valley University’s Emerging Tech Policy Lab, believes that the Utah AG Office is raising the stakes in this ongoing battle.
“I think the key element there is that there’s actual individual accountability for the people who are behind these companies,” Amacher told KUTV.
Utah Attorney General Derek Brown insists that Kalshi is continuing to operate in Utah. This is despite a federal court ruling that Utah's gambling laws do apply to the company.
“Gambling is illegal in Utah, whether you place the bet, run the game, or promote it," Brown said in a statement, according to the Associated Press. "Calling it a ‘prediction market’ doesn’t change what it is, and being federally registered doesn’t put a company above the law."
An undercover agent from the Utah AG office was trading on Kalshi
Special Agent Scott Eggerman, of the Utah Attorney General's Office, went undercover to make several trades on the Kalshi platform. Between September 13 and September 24, Eggerman made plays on Kalshi on 12 different sports-event contracts.
The charging documents show that Kalshi asked the agent to “confirm his location using location services” in the state of Utah. This had to be verified before he was able to place any wager. Eggleman operated in both Salt Lake and Davis counties, according to reporting by the Salt Lake Tribune.
There are battling lawsuits between Utah and Kalshi
These criminal charges are coming on the heels of the CFTC filing a lawsuit in Utah. The CFTC is taking legal action against the state of Utah. Its purpose is to block Utah's attempt to shut down Kalshi's event contracts.
This action follows a decision by Utah AG Brown to sue Kalshi. Utah’s original complaint was filed in the Third District Court in Salt Lake County. Named as defendants in the suit were Kalshi and two Susquehanna trading firms. The suit is seeking to recover between $30.6 million and $61.2 million in fees and profits.