Kalshi and its two co-founders face criminal charges in Utah over online gambling promotion

The US state of Utah has brought criminal charges against the popular prediction market platform Kalshi and the company's two co-founders. State authorities accuse the platform and its top executives of illegally promoting online gambling.

Utah Attorney General Derek Brown filed the charges on Wednesday in a district court in Salt Lake City. Those charged are Kalshi itself, its chief executive officer Tarek Mansour and its chief operating officer Luana Lopes Lara.

The criminal complaint accuses the defendants of 12 counts of online gambling promotion. It also includes a count of pattern of unlawful activity, according to the complaint.

The case comes after a federal judge ruled in August that Utah could enforce its stringent anti-gambling laws against prediction markets such as Kalshi and Polymarket. Following that ruling, the state has now taken the criminal route.

On a prediction market, users buy and sell predictions on the outcomes of events for money. Utah's position is that this activity amounts to the promotion of online gambling under the state's laws.

Proceedings in the case will now continue in the district court in Salt Lake City, where it will be decided whether the charges are proved.