REGULATION | Kalshi Faces Criminal Charges and Civil Lawsuits as Prediction Market Legal Risks Escalate

Utah has filed 14 criminal charges against prediction market operator Kalshi and its co-founders, escalating a legal battle that now exposes the company to both criminal prosecution and civil penalties over its sports and event contracts. The charges include one felony count alleging a pattern of unlawful activity, 12 felony counts of promoting online gambling, and one misdemeanor count. Prosecutors allege Kalshi continued accepting wagers from Utah residents despite a federal court ruling allowing the state to enforce its gambling laws.