Utah files criminal gambling charges against prediction platform Kalshi

Utah authorities filed criminal charges against prediction market platform KalshiEX and its co-founders on Oct. 28, 2026. CryptoSlate reported that the filing includes 13 felony charges, while The Salt Lake Tribune reported that 14 criminal charges were filed. Ars Technica, FOX 13 News Utah, Sports Business Journal, and CoinDesk also confirmed that the state filed criminal charges against the company and its executives for breaking state gambling laws. [1][2][3][4][5][6]

The criminal filing names Kalshi Chief Executive Officer Tarek Mansour and Chief Operating Officer Luana Lopes Lara as co-defendants, according to CryptoSlate. Prosecutors initiated the action after an undercover agent placed $115 in sports bets on the platform, including a $10 sports wager. CryptoSlate reported that the agent confirmed his Utah location prior to trading and paying a fee, providing evidence to challenge the firm's claims of federal regulatory protection. [1]

Kalshi classifies itself as a federally regulated commodity exchange rather than a sportsbook. This structure has allowed the platform to operate in states where sports betting is illegal and permit users as young as 18 years old to trade while avoiding state gaming taxes. The platform previously faced a 2023 CFTC disapproval of its self-certified congressional control contracts and encountered ongoing legal disputes regarding offerings that resemble sports betting. [8]

The legal action escalates a dispute between state prosecutors and the platform over whether federally regulated prediction markets must comply with state gambling laws, according to CryptoSlate. CryptoSlate noted that the Commodity Futures Trading Commission contests state authority in the matter. [1]