According to Decrypt, the state of Utah has filed felony charges against the co-founders of Kalshi in connection with sports betting activities. The filing occurred after an undercover agent placed a dozen sports wagers on Kalshi on a single day. The CFTC sued Utah shortly before this enforcement action to block its efforts.
The state’s move comes amid ongoing regulatory scrutiny involving Kalshi and the U.S. Comptroller of the Currency’s predecessor agency, the Consumer Financial Protection Bureau, which has raised concerns about online sports wagering compliance. Utah alleges that the co-founders knowingly facilitated or participated in the placement of bets through the platform despite applicable state restrictions.
No further details have been provided regarding the timing of the undercover operation relative to the CFTC’s lawsuit, nor any statements from the individuals charged. The felony classification reflects Utah’s determination that the conduct meets criteria for criminal liability under state law. The CFTC’s legal challenge seeks to halt Utah’s enforcement actions pending resolution of regulatory authority and jurisdictional questions.
