Utah charges Kalshi with illegal gambling as CFTC fights in court

Utah has filed criminal charges against prediction platform Kalshi and its co-founders over its event-contract betting, escalating the state's fight even as the CFTC sues Utah to shield Kalshi's offerings. The CFTC argues event contracts "provide the public with information about the outcome of future events" and that federal authority preempts state law, while the state's attorney general contends Kalshi is running illegal gambling where it is constitutionally banned.

• Utah has so far prevailed against Kalshi in district court, in a ruling now under appeal.
• The Supreme Court is weighing whether to hear the dispute: the Sixth and Eighth Circuits sided with state gambling law while the Third backed CFTC jurisdiction; New Jersey asked the high court to take the case.
• The CFTC has pursued more than a dozen legal actions in the fight and is battling 10 states in court, while Kalshi CEO Tarek Mansour warns state oversight would push the industry offshore.