Utah Attorney General sues Kalshi over alleged illegal prediction market betting

Utah Attorney General Derek Brown filed a civil lawsuit against prediction market platform Kalshi and affiliated trading companies, alleging they facilitated illegal betting in the state since 2024. The state seeks to recover between $30 million and $60 million in profits from over 32,000 users who allegedly suffered significant losses. The lawsuit follows a judge's ruling in August that federal CFTC laws do not preempt state gambling laws.