Utah Files Felony Charges Against Kalshi and Co‑Founders for Illegal Sports Betting Promotion

Utah prosecutors have charged KalshiEX LLC and its co‑founders, CEO Tarek Mansour and COO Luana Lopes Lara, with a second‑degree felony pattern of unlawful activity, 12 third‑degree felony counts of online gambling promotion, and a misdemeanor gambling promotion charge. The case stems from an undercover state agent who, in September, placed 12 sports wagers—NFL and college games—on Kalshi while passing a location check that confirmed the agent was in Utah. Kalshi, which markets itself as a prediction‑market platform and is federally registered with the CFTC, says the charges are a “crazy overreach” and has already sued Utah to block enforcement of its gambling laws. The state’s Attorney General, Derek Brown, stated that “calling it a ‘prediction market’ doesn’t change what it is” and that federal registration does not exempt the company from state law. The lawsuit follows Utah’s prior state‑court filing against Kalshi and the CFTC’s recent suit to stop Utah from enforcing its gambling statutes against federally regulated exchanges.