Kalshi, cofounders hit with criminal charges in US state of Utah

Key Points:

• Utah has filed criminal charges against prediction market Kalshi and its cofounders, accusing them of illegally promoting online gambling, with 12 counts of online gambling promotion and additional charges related to unlawful activity.
• The charges follow a federal judge's ruling allowing Utah to enforce its strict anti-gambling laws against online prediction markets, and come amid ongoing legal battles over jurisdiction between state authorities and federal regulators.
• The Commodity Futures Trading Commission (CFTC) sued Utah to block its enforcement actions, asserting that prediction markets fall under federal jurisdiction, intensifying a conflict with states like Utah and New Jersey over regulation of sports betting and prediction platforms.
• Utah’s constitution explicitly prohibits legalizing gambling, making it one of the strictest states on the issue, and the state’s actions represent a broader push by some states to assert regulatory control over online prediction markets.
• The dispute highlights a growing legal and regulatory showdown between state governments and federal agencies regarding the authority to regulate emerging online betting and prediction market platforms.