Utah Files 14 Criminal Counts Against Kalshi and Cofounders

Utah has filed 14 criminal counts against Kalshi and its cofounders, accusing the prediction-market operator of promoting illegal gambling and unlawful activity in the state. The charges name chief executive Tarek Mansour and chief operating officer Luana Lopes Lara, as well as the company. They are allegations, not findings of guilt. The charging documents list 12 counts of online gambling promotion, one count of general gambling promotion and one count of a pattern of unlawful activity. Utah Attorney General Derek Brown filed the case in state court in Salt Lake City on October 28, according to the reported filing date. Kalshi said it would challenge the charges in court, calling the action a “crazy overreach.” The company argues its event contracts are federally regulated financial products and that state gambling laws do not govern them. Brown has said Kalshi continued operating in Utah despite a federal court ruling that the state’s gambling laws applied to the company. The case follows a federal judge’s August ruling that Utah could enforce its gambling laws against Kalshi. The Tenth U.S. Circuit Court of Appeals later declined to halt enforcement while Kalshi appeals....