Utah Attorney General Derek Brown has launched a lawsuit against Kalshi, its affiliates, and two trading companies under Susquehanna, claiming that the prediction markets platform has been engaging in illegal betting activities in Utah since 2024.

During a press briefing on Tuesday, Brown revealed that state officials have asked the court to enforce the return of profits estimated between $30 million and $60 million that the companies allegedly earned through unlawful event contracts. According to the Utah attorney general, Kalshi extended its services to over 32,000 users in the state, leading to considerable financial losses

“Under Utah law, I have determined that this operation is causing significant and ongoing harm to a large number of Utah residents,” Brown stated. “Therefore, we are requesting the court to halt betting related to sports, elections, politics, culture, and similar events in Utah.” In February, Kalshi initiated a lawsuit against the state following the passage of a bill designating prediction market betting as gambling under state law.

A court ruled in favor of Utah officials in August, affirming that federal regulations under the US Commodity Futures Trading Commission (CFTC) do not override state gambling legislation. Additionally, an appellate court denied Kalshi’s request for an injunction in September, preventing the platform from operating while the appeal is in process. In response to the Utah lawsuit, Kalshi spokesperson Jacki McGavick stated, “Kalshi is a federally regulated financial exchange, similar to the stock market. Our customers engage in trades among themselves and determine prices.

As a national derivatives market governed by the CFTC, we adhere to federal law, and no individual state should hold veto power over our operations. This recent state court action does not affect our ongoing federal litigation.”