Switch to seedless. Get 30% off with SWITCH30 till Oct 21Utah sues Kalshi, Susquehanna over illegal gambling claims
7 Regulation Utah sued Kalshi and Susquehanna firms for alleged illegal online gambling. The state seeks to block access, recover up to $61.2 million, and label the platforms a public nuisance.
Utah has initiated a civil lawsuit against prediction market platform Kalshi and two trading firms linked to Susquehanna, alleging they provided illegal online gambling services to Utah residents. The complaint centers on contracts related to sports, politics, elections, and cultural events, which the state claims constitute unlawful gambling. Utah is seeking injunctive relief to block access to these markets, restitution for resident losses, and disgorgement of profits—estimated between $30.5 million and $61.2 million—allegedly earned from Utah-based accounts. The state also requests the court declare the platforms a public nuisance and approve a geolocation provider to enforce restrictions. This marks the first state-level action against prediction market operators and follows a federal court decision upholding Utah's gambling ban. Utah argues that labeling bets as "event contracts" does not change their fundamental nature, likening Kalshi's operations to a "back-alley gambling den." The state aims to halt these operations and recover profits from what it deems unlawful activities.
