Utah filed felony criminal charges on October 28, 2026, against prediction market company Kalshi and the two co-founders who lead it, alleging violations of the state's anti-gambling laws and profiting from illegal activity.
The Guardian reported that the charges came months after a federal judge declined to block Utah from applying its gambling restrictions to Kalshi. The company had sought that injunction and lost.
Kalshi called the prosecution a "crazy overreach." The company operates a prediction market platform, a fast-expanding category that, according to The Guardian, now appears headed toward a US Supreme Court showdown between states and prediction market operators.
The felony counts mark what may be a new tactic by states asserting regulatory authority over prediction markets, ABC News and The Guardian both noted.