Utah files criminal charges against prediction market Kalshi and co-founders

The US state of Utah has filed criminal charges against prediction market operator Kalshi and two of its co-founders, according to Al Jazeera English and The Guardian. The charges accuse the company and executives of illegally promoting online gambling, including facilitating wagers on NFL games.

The criminal complaint, filed in Salt Lake City, includes 12 counts of online gambling promotion, one count of general gambling promotion, and one count of pattern of unlawful activity. Utah's Attorney General Derek Brown initiated the charges following a federal judge's ruling that Utah could enforce its anti-gambling laws against prediction markets.

Kalshi had previously sought to block enforcement of Utah's strict anti-gambling laws but was unsuccessful. Utah's constitution explicitly prohibits legalizing gambling, making the state's laws among the strictest in the US.

This legal action escalates a broader conflict between US states and the federal government over the regulation of prediction markets. The Commodity Futures Trading Commission recently sued Utah to block its enforcement actions, arguing that prediction markets fall under federal jurisdiction.

Kalshi has described the charges as a 'crazy overreach,' highlighting the ongoing dispute over regulatory authority. The case may eventually be decided by the US Supreme Court as the clash over prediction market regulation continues to unfold.