Utah Files Criminal Charges Against Kalshi and Its Two Co-Founders

Published on November 3rd, 2026

Judge's gavel with scales of justice, a laptop displaying a market chart, Utah's Delicate Arch and American flags, illustrating Utah's criminal case against Kalshi.

Key Details

Utah filed 14 criminal counts against Kalshi, including 13 felonies, and named co-founders Tarek Mansour and Luana Lopes Lara as co-defendants.
An undercover investigator placed 12 sports wagers totaling $114.87 through a Kalshi account registered in Utah.
Kalshi argues that its event contracts fall under federal CFTC regulation, while Utah maintains they violate state gambling laws.
The case does not change Utah’s online poker restrictions. The state still has no regulated online poker market.

Utah has filed criminal charges against prediction market Kalshi, naming co-founders CEO Tarek Mansour and COO Luana Lopes Lara as co-defendants. The October 28 filing lists 13 felony counts and one misdemeanor related to alleged illegal gambling activity.

Kalshi denies wrongdoing and plans to fight the charges in court. For poker players, the case highlights Utah’s strict approach to gambling enforcement, even when an operator argues that it falls under federal regulation.

What Utah Charged Kalshi With

Utah prosecutors filed 14 criminal counts against KalshiEx LLC. The company’s two co-founders are also named in the case:

One second-degree felony count of engaging in a pattern of unlawful activity.
Twelve third-degree felony counts of online gambling promotion.
One class A misdemeanor count of general gambling promotion.

Mansour and Lopes Lara received summonses to appear in court rather than arrest warrants. The charges remain allegations, and neither executive has been convicted in this case.

How Utah Investigated Kalshi

Utah Attorney General’s Office investigator Scott Eggerman created an undercover Kalshi account using a Utah residential address, phone number and bank account. He also accessed the platform using a Utah-based IP address.

Between September 13 and 26, Eggerman placed 12 sports wagers totaling $114.87. The bets covered football, baseball, soccer and hockey, and Kalshi collected fees on the transactions. Prosecutors argue that the wagers show Kalshi allowed gambling activity in Utah despite the state’s restrictions.

Why Kalshi Says Utah Has No Case

Prediction markets allow users to trade contracts based on the outcome of real-world events, including sporting events. Kalshi argues that these contracts are financial products regulated by the Commodity Futures Trading Commission (CFTC), rather than gambling products subject to state law.

Arizona also filed criminal charges against Kalshi in March 2026, but a federal judge later blocked the prosecution.

The State-vs-Federal Fight Over Prediction Markets

Utah and Kalshi have already fought over the state’s gambling laws in federal court. In August, a judge ruled that federal law did not prevent Utah from enforcing its gambling restrictions against Kalshi’s sports contracts. The 10th U.S. Circuit Court of Appeals later declined to pause that ruling. Utah also filed a separate civil lawsuit seeking to stop Kalshi from operating in the state and recover alleged illegal profits.

On October 26, the federal government and the CFTC filed a lawsuit against Utah, arguing that federal law gives the agency authority over event contracts traded on federally regulated exchanges. The CFTC announced the lawsuit the following day. Other states have also challenged Kalshi’s sports-related contracts through lawsuits and regulatory action.

The central question is whether federal oversight of prediction markets prevents states from enforcing their gambling laws against those products. The issue could eventually reach the US Supreme Court.

What This Means for Utah Poker Players

Utah continues to prohibit gambling, including online poker, under Utah Code § 76-9-1402. The state has no regulated online poker market, and the Kalshi case does not change that. Offshore poker sites may be accessible, but they operate without authorization or oversight from Utah regulators.

Although prediction markets and online poker operate differently, the charges show Utah’s willingness to pursue operators it believes are violating state gambling laws. However, the outcome of Kalshi’s case won’t necessarily affect online poker, as the dispute centers on whether federal oversight of event contracts overrides state gambling restrictions.

The criminal charges remain unresolved, and further court decisions could shape how prediction markets are regulated. In the meantime, players can review our Utah poker laws guide or explore our state-by-state poker legislation hub to understand where online poker is regulated across the US.

Sandra is a content writer and editor specializing in online poker and iGaming. She covers poker sites, game formats, industry news, and US online poker laws for Legal US Poker Sites.