Utah and the prediction market Kalshi are headed back to court — but this time Utah is the one suing.
Earlier this year, Kalshi sued the state for defining proposition bets as gambling, but the judge sided with Utah instead.
Now, the state seems ready to enforce those laws. In a new lawsuit announced on Tuesday, the Utah Attorney General’s office claimed Kalshi illegally made millions of dollars off Utahns since at least 2024.
It also said Kalshi falsely advertises itself as legal in every U.S. state despite Utah’s ban.
According to data from Kalshi’s original lawsuit, they had about 56,000 accounts registered with a Utah address as of February. Those accounts had entered into more than five million individual wagers.
Utah wants Kalshi to pay back those profits, which the attorney general’s office estimated between $30 and 60 million. The state also wants geolocation information implemented so Utahns can’t use the app and a ban on Kalshi event contracts in the state.
Kalshi has long argued it’s not technically a sports gambling operator and can only be regulated by the federal government, rather than states.
