Kalshi sued by Utah Attorney General, seeking up to $60 million in alleged illegal gambling proceeds

Odaily reports: Prediction market platform Kalshi, along with its affiliates and two Susquehanna-owned trading firms, has been sued by Utah Attorney General Derek Brown, who alleges they facilitated illegal gambling in the state starting in 2024.

Brown stated that the state has asked the court to order the companies to disgorge approximately $30 million to $60 million in profits obtained through allegedly unlawful event contracts. Utah claims that Kalshi provided services to more than 32,000 users in the state and caused significant losses.

In February of this year, Kalshi sued the state of Utah after its legislature classified prediction market betting as gambling. In August, a judge ruled that relevant federal law governing the U.S. Commodity Futures Trading Commission (CFTC) does not preclude the application of state gambling laws.

In September, an appellate court denied Kalshi's request for an injunction to block it from operating in the state during the appeal. The U.S. Supreme Court is considering whether to take up New Jersey's case against Kalshi over alleged illegal sports betting, a dispute concerning the regulatory authority of state governments versus the CFTC over event contracts. (Cointelegraph)