- In the latest AG legal skirmish over prediction markets, Utah AG Derek Brown filed a lawsuit against Kalshi Inc. and several affiliated entities, along with Susquehanna International Group and an affiliate, alleging violations of state gambling and sports betting laws dating to at least 2024. The state is seeking an estimated $30 to $60 million in profits, with the final amount to be determined through discovery, allegedly earned from Utah residents from accessing the platform. The lawsuit also seeks geolocation restrictions to prevent Utah residents from accessing the platform.
- According to the AG’s office, data from Kalshi showed that nearly 56,000 accounts listed Utah addresses as of February and had placed more than 5 million wagers. The lawsuit follows an earlier dispute in which Kalshi challenged Utah’s enforcement of its gambling laws. In August, a federal judge ruled that Utah could enforce its laws against Kalshi and similar prediction markets.
- AG Brown also raised concerns about the potential effects of prediction markets and betting apps on young men, including addiction-related mental health and relationship problems.