CFTC Sues Utah to Block Kalshi Crackdown After State’s Court Victory

Utah sued Kalshi last week, and now the federal government is suing Utah. The Commodity Futures Trading Commission (CFTC) and the U.S. Department of Justice filed suit Monday against Utah and Attorney General Derek Brown , seeking to block enforcement of state gambling laws against federally regulated prediction markets. The complaint requests preliminary and permanent injunctions. The filing comes six days after Brown sued Kalshi entities and two Susquehanna firms, seeking to stop their alleged gambling operations and recover money. That state action targets sports, election, political, cultural and mentions contracts, not just markets that resemble sportsbook wagers.