Utah has filed criminal charges against prediction market company Kalshi and two of its co-founders, escalating a legal battle over whether states can regulate event contracts as gambling.
The charges come after the U.S. Court of Appeals for the 10th Circuit ruled in August that federal commodities law did not preempt Utah’s authority to regulate Kalshi’s sports event contracts under state gambling laws. Kalshi is currently appealing the decision. At the same time, the Commodity Futures Trading Commission sued Utah on Tuesday, arguing that federal law gives the CFTC exclusive authority over the markets and preempts state enforcement.
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