Utah files 14 criminal charges against Kalshi over sports betting

The investigation, led by agent Scott Eggerman, involved opening a Kalshi account from a Utah address in September. Over several days, the agent placed bets on NFL, college football, baseball, and soccer matches, risking $114.87. Prosecutors filed 13 felony counts—one for each transaction and a broader charge of unlawful activity—alongside a misdemeanor for gambling promotion. Attorney General Derek Brown stated that federal registration does not grant the platform immunity from state gambling prohibitions, dismissing the company’s "prediction market" classification as a semantic shield.

Kalshi officials labeled the prosecution a political overreach, asserting their intention to fight the charges in the Third District Court. This criminal case runs parallel to a separate civil lawsuit where Utah seeks up to $61.2 million in allegedly illicit fees. The legal standoff has drawn in the Commodity Futures Trading Commission, which recently sued Utah to assert that federal commodities law overrides state-level gambling restrictions on regulated exchanges. With the Tenth Circuit allowing state enforcement to proceed during appeals, the dispute remains a central test of whether prediction markets can operate sports-related contracts in states with strict anti-gambling statutes.