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Utah files felony charges against Kalshi and its co-founders for violating gambling laws
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Utah Attorney General Derek Brown filed criminal charges in state court against prediction market Kalshi and its co-founders, CEO Tarek Mansour and COO Luana Lopes Lara. Each faces 13 felony counts and one misdemeanor for violating Utah gambling laws, based on sports bets offered between September 13 and September 24. No arrest warrants were issued; the founders received summonses to appear in Third District Court in Salt Lake County. Kalshi called the charges 'a crazy overreach' and said it would fight them in court, citing a similar case it defeated in Arizona in May. Utah, which bans gambling under state law and its constitution, filed a civil suit against Kalshi last week. The state is also defending against a lawsuit filed by the US Commodity Futures Trading Commission, which regulates prediction markets and is challenging Utah's enforcement.
Source report
Published: October 29, 2026, 20:37:59
The Trump administration is attempting to prevent Utah from enforcing its gambling ban against Kalshi, making Utah the 10th state sued by the US government agency that regulates prediction markets.
Criminal Charges Filed
Utah Attorney General Derek Brown filed criminal charges in a state court against Kalshi and its founders on Wednesday. The attorney general's office provided court filings listing charges against:
- KalshiEX, LLC
- Tarek Mansour — Kalshi co-founder and CEO
- Luana Lopes Lara — Kalshi co-founder and COO
The company and both co-founders each face 13 felony charges and one misdemeanor for violating gambling laws. The charges are based on sports bets offered on Kalshi between September 13 and September 24.
According to The Salt Lake Tribune, "The state did not issue arrest warrants for Mansour and Lopes Lara. Instead, they have been issued summons to respond to the charges in Third District Court in Salt Lake County."
Kalshi Vows to Fight
The Utah News Dispatch quoted a Kalshi statement vowing to fight the charges:
"This is a crazy overreach; Utah is clearly playing politics. We look forward to putting a stop to this in court, just like we did in Arizona."
The statement referred to similar charges the company defeated in Arizona in May, when a federal judge permanently blocked that state's criminal case against Kalshi.
Background: Civil Lawsuit and State Law
Utah, which prohibits gambling, filed a civil lawsuit against Kalshi in a state court last week seeking an order prohibiting the company from offering bets on sports, elections, politics, and other events.
Utah Attorney General Derek Brown, a Republican, said last week:
"Kalshi runs an online casino in Utah and calls it a prediction market. That violates Utah law. Not only do our state laws ban gambling but Utah is one of only two states where gambling is also prohibited under the state constitution. For 130 years, Utah has been clear: gambling has no place here, and we will enforce our laws."
Legal Posture
Utah previously defeated Kalshi in federal court after the prediction market filed a preemptive lawsuit seeking to prevent the state from enforcing its gambling laws. Now that Utah is moving forward with its attempt to shut down Kalshi, it must defend against a lawsuit filed by the US Commodity Futures Trading Commission (CFTC).
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Hacker NewsNeutral / independent
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Utah Files Felony Gambling Charges Against Kalshi and Co-Founders