Buy a Licensed Company 
Explore VASP Data 
Talk to an Expert 
Sergiu Hamza
Sergiu is a thought leader with a background in mathematics, authentification, identification, and a passion for Bitcoin.
Utah Files 13 Felony Charges Against Kalshi and Founders
Utah filed 13 criminal charges against Kalshi and its two founders after an undercover agent placed 12 sports wagers totaling $114.87. The case deepens a dispute with the CFTC over state gambling authority.
Utah filed 14 criminal counts, 13 felonies and one misdemeanor, against prediction market operator KalshiEX (Kalshi) on 28 October 2026. The filing names Chief Executive Officer Tarek Mansour and Chief Operating Officer Luana Lopes Lara as co-defendants.
- The charges stem from 12 sports wagers totaling $114.87 that a Utah state agent placed on Kalshi between 13 September and 26 September.
- The filing lists 12 third-degree felony counts of online gambling promotion, one second-degree felony count of engaging in a pattern of unlawful activity and a misdemeanor gambling promotion charge.
- The Commodity Futures Trading Commission (CFTC) and the US government sued Utah on 26 October over enforcement of gambling restrictions against federally regulated prediction markets.
Federal and state conflict over prediction market jurisdiction
The CFTC argues that the Commodity Exchange Act gives it exclusive jurisdiction over derivatives traded on registered exchanges, including Kalshi’s event contracts. Utah maintains that federal registration does not exempt the platform from state gambling restrictions.
In August, a federal judge rejected Kalshi’s argument that federal law prevented Utah from enforcing its gambling laws. The Tenth Circuit later declined to suspend enforcement while Kalshi appeals.
In a separate civil suit filed on 20 October, Utah asks the court to bar Kalshi from offering contracts on sports, elections, politics and other events to Utah residents, to order geolocation controls and to make Kalshi give up profits from the bets the state calls unlawful.
On 29 October, a coalition of 37 state attorneys general filed a brief supporting Utah’s regulatory authority in the pending federal appeal.
What the Utah filing alleges against Kalshi
According to the filing, Special Agent Scott Eggerman created an undercover Kalshi account using a Utah residential address, phone number and locally issued debit card.
Before his first $10 wager, on a Dallas Cowboys-New York Giants game, Kalshi allegedly required him to confirm his location through its location services. He answered that he was in Utah, and the bet still went through, with Kalshi taking a 44-cent fee.
He then placed 11 more wagers on football, baseball, soccer and hockey events, which generated further transaction fees. The filing alleges Kalshi collected revenue from unlawful gambling activity and reinvested the proceeds into its operations. It also cites public statements by Mansour and Lopes Lara describing their direct control over the company’s management and business activities.
Both executives received court summonses rather than arrest warrants, and none of the charges has been proven. Kalshi rejected the allegations, calling the prosecution a “crazy overreach” and accusing Utah of “playing politics.”
What a ruling for Utah could mean
A ruling allowing Utah to enforce its restrictions could force Kalshi to block affected contracts for residents. It could also expose revenue earned in the state to recovery claims, while the founders face the separate criminal proceeding.
