Utah Attorney General Derek Brown sues Kalshi and Susquehanna firms over alleged illegal gambling

  • Derek Brown sued Kalshi, its affiliates and two Susquehanna trading firms over Utah event contracts.
  • Utah seeks recovery of an estimated $30 million to $60 million in alleged profits.
  • Utah says Kalshi served more than 32,000 users in the state since 2024.

Utah Attorney General Derek Brown is suing prediction-market platform Kalshi, its affiliates and two Susquehanna trading firms, alleging they facilitated illegal gambling in the state from 2024. Brown described the operation as a public nuisance causing ongoing harm to Utah residents. Utah is seeking court-ordered repayment of an estimated $30 million to $60 million in profits tied to allegedly unlawful event contracts and says Kalshi served more than 32,000 users in the state, resulting in significant losses. The action follows Kalshi's February challenge to Utah's treatment of prediction-market betting as gambling, an August ruling that federal Commodity Futures Trading Commission-related law does not displace state gambling restrictions, and a September appellate decision denying Kalshi an injunction while its appeal proceeds. The dispute is part of wider state litigation against prediction-market platforms, while the U.S. Supreme Court considers whether to hear New Jersey's case involving Kalshi and alleged illegal sports betting.

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