Utah brings criminal charges against Kalshi and co-founders

Utah has brought criminal charges against Kalshi and co-founders Tarek Mansour and Luana Lopes Lara, adding a criminal prosecution to its dispute with the prediction-market operator over state gambling laws.

The action was brought on October 28. A 15-page charging document and probable-cause declaration names KalshiEX LLC as defendant and identifies Mansour and Lopes Lara as co-defendants.

The document lists one count of pattern of unlawful activity, a second-degree felony; 12 online-gambling-promotion counts, third-degree felonies; and one general-gambling-promotion count, a Class A misdemeanor. The charges are allegations and do not establish guilt.

Undercover sports trades form the prosecution's account

Special Agent Scott Eggerman's declaration says he created an undercover Kalshi account using information identifying him as a Utah resident, including a local address, phone number and banking details. It describes sports transactions placed from within Utah during September and alleges Kalshi collected fees on them.

FOX 13 reported that Mansour and Lopes Lara were issued summonses. Kalshi told the broadcaster that Utah was acting politically and said it would challenge the prosecution in court.

A separate criminal case

The prosecution follows Utah's October 20 civil lawsuit seeking to stop Kalshi's operations in the state. The United States and Commodity Futures Trading Commission subsequently sued Utah to block state enforcement, arguing that federal commodities law pre-empts the state's restrictions.

In an earlier federal case, US District Judge Robert Shelby granted Utah officials summary judgment on August 4, concluding that the Commodity Exchange Act did not prevent enforcement of Utah's anti-gambling laws against Kalshi. The charging declaration records Kalshi's appeal and the Tenth Circuit's September 8 refusal to grant an injunction pending that appeal.

The criminal prosecution is separate from the civil proceedings.