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Utah Files Felony Charges Against Kalshi and Its Two Co-Founders
Attorney General Derek Brown’s office alleges the prediction market took sports bets from Utah; Kalshi calls the case an overreach.
Utah Attorney General Derek Brown’s office has filed criminal charges against the prediction market Kalshi and co-founders Tarek Mansour and Luana Lopes Lara, KUER reported Oct. 28.
Fox 13 reported the charges are a second-degree felony count of pattern of unlawful activity, 12 third-degree felony counts of online gambling promotion and one misdemeanor count of gambling promotion. The founders were issued summonses, and prison time is possible on conviction.
The state alleges an investigator in its office used a Utah IP address to open an account and place sports wagers, according to KUER. KUER noted an Aug. 4 federal court ruling against the site, and Brown said a federal court has already ruled that Utah’s gambling laws apply to Kalshi. Brown said that calling it a prediction market does not change what it is, Fox 13 reported.
Kalshi called the case a crazy overreach and said Utah is playing politics, per both outlets. KUER reported the federal Commodity Futures Trading Commission, which regulates Kalshi, sued Utah two days earlier to stop its civil case; the attorney general’s office said the timing was coincidental. Utah filed the civil suit Oct. 20.
Sources
- KUER, Oct. 28, 2026: the charges, the investigator’s account, the CFTC suit and Kalshi’s response <https://www.kuer.org/politics-government/2026-10-28/kalshi-prediction-market-utah-gambling-criminal-charges>
- Fox 13 Salt Lake City, Oct. 28, 2026 (article says charges obtained ‘Wednesday’): the count-by-count charges, summonses and the attorney general’s statement <https://www.fox13now.com/news/politics/utah-levels-criminal-charges-against-kalshi-and-some-of-its-executives>
This article was drafted with automated tools from the sources listed, checked by a review pass, and published by Daniel Varrone. Corrections: editor@monochromechronicles.com