Kalshi co-founders face Utah felony gambling charges
The gist
Utah charged prediction market Kalshi and its two co-founders with 14 gambling counts over 12 sports bets.
The case tests whether federal derivatives oversight overrides a state's total gambling ban.
How it unfolded
- Feb 2026Kalshi sued Utah officials in federal court to stop the state from bringing an enforcement action against the prediction market.
- Aug 2026US District Judge Robert J. Shelby granted Utah summary judgment and denied Kalshi a preliminary injunction, ruling the Commodity Exchange Act does not preempt Utah's anti-gambling enforcement.
- Sep 8, 2026Tenth Circuit judges denied Kalshi's emergency motion for an injunction pending appeal.