# Utah Criminal Case Against Kalshi and Its Founders: Charges and Dates

> On October 28, 2026, Utah Attorney General Derek Brown filed criminal charges against KalshiEX LLC and co-founders Tarek Mansour and Luana Lopes Lara: a second-degree felony for a pattern of unlawful activity, 12 third-degree felony counts of online gambling promotion and one misdemeanor. The founders received court summonses, and no arrests were made. Kalshi called the case political overreach.

Published 2026-11-10 by Prediction News Wire. Canonical: https://predictionnews.news/utah-kalshi-founders-case/

## Key points

- Utah filed 14 counts on October 28, 2026: one second-degree felony, 12 third-degree felonies and one class A misdemeanor; Front Office Sports reported three separate cases of 14 counts each.
- The case rests on 12 sports trades an undercover state investigator placed over 11 days from a Utah account opened September 13, 2026.
- Kalshi has been summoned to Utah's Third District Court in Salt Lake City for an initial appearance on December 4 at 8:30 a.m., per a court filing shared by attorney Daniel Wallach.
- The CFTC sued Utah one to two days before the charges; Utah is the tenth state the agency has sued over prediction markets.
- New Jersey's Supreme Court petition is pending; Kalshi's response is due December 7 after an extension.

Utah Attorney General Derek Brown on October 28, 2026 filed criminal charges against Kalshi's operating company, KalshiEX LLC, and its co-founders, CEO Tarek Mansour and Luana Lopes Lara, accusing them of running illegal online gambling in the state. The lead count, a pattern of unlawful activity, is a second-degree felony. Utah is the second state to bring criminal charges against Kalshi, after Arizona.

The case moves the state-versus-federal fight over sports event contracts from civil injunctions to personal criminal exposure for the people who run a CFTC-registered exchange. It was filed one to two days after the Commodity Futures Trading Commission sued Utah to stop the state from enforcing its gambling laws against federally regulated markets.

## What are the charges?

According to [KUER](https://www.kuer.org/politics-government/2026-10-28/kalshi-prediction-market-utah-gambling-criminal-charges), [FOX 13](https://www.fox13now.com/news/politics/utah-levels-criminal-charges-against-kalshi-and-some-of-its-executives) and the [Deseret News](https://deseret.com/sports/2026/10/28/utah-files-criminal-charges-kalshi-illegal-gambling-promotion-cftc-sues-utah-block-laws), the counts are:

- one count of pattern of unlawful activity, a second-degree felony;
- 12 counts of online gambling promotion, third-degree felonies;
- one count of general gambling promotion, a class A misdemeanor.

That is 14 counts, 13 of them felonies. [Front Office Sports](https://frontofficesports.com/?p=254545) reported that Brown filed three separate cases, one each against Kalshi, Mansour and Lopes Lara, with 14 counts in each. Accounts of the per-defendant structure differ: the Deseret News said it could not tell which defendants face which counts, and a [Brownstein Hyatt Farber Schreck](https://www.bhfs.com/insight/prediction-markets-dispute-escalates-utah-files-felony-criminal-charges-against-kalshi-and-co-founders/) client alert gives both 14 and 13 as the total in different passages.

Front Office Sports reported that the second-degree count alone carries up to 15 years in prison and that Mansour and Lopes Lara could each face up to 75 years if convicted. [Covers](https://www.covers.com/industry/utah-files-criminal-gambling-charges-against-kalshi-executives-oct-29-2026) reported that the state did not say what penalties it will seek. The charges are allegations; no court has ruled on them.

## What did the investigation find?

The charges rest on an undercover account. FOX 13 reported that Utah attorney general investigator Scott Eggerman opened a Kalshi account using a Utah IP address, a Utah persona, a Utah phone number and a Utah bank account. The Deseret News dated the account to September 13, 2026.

Over 11 days he placed 12 sports trades, according to Brownstein and [DeFi Rate](https://defirate.com/news/kalshi-founders-utah-summonses/). The Deseret News listed NFL and MLB games, a Utah versus Utah State football game and a Real Salt Lake match; Front Office Sports also listed an NHL game. One example in the charging papers, per the Deseret News: a $5 position on Utah covering 27.5 points, which paid $4.13 after Utah won by 36.

Kalshi charged fees of 3 to 78 cents per transaction, the Deseret News reported, and the probable cause affidavit treats those fees as proceeds of unlawful activity, FOX 13 reported. Front Office Sports put the total at $114.87 wagered and $25.10 lost; 24/7 Wall St. reported about $114.

## Were the founders arrested, and when is the court date?

No arrests were made. Utah sought summonses instead of arrest warrants, and FOX 13 reported that Mansour and Lopes Lara were issued summonses to appear. DeFi Rate, citing an X post by gaming attorney Daniel Wallach, reported that Kalshi has been summoned to "personally appear" in Salt Lake City's Third District Court on December 4 at 8:30 a.m. for an initial appearance and arraignment. The post as quoted refers to the company; appearance dates for the two founders individually were not reported in the sources reviewed.

## What do Utah and Kalshi say?

Brown said in a statement quoted by FOX 13 and the Deseret News: "Gambling is illegal in Utah, whether you place the bet, run the game, or promote it. Calling it a 'prediction market' doesn't change what it is, and being federally registered doesn't put a company above the law." He added: "A federal court has already ruled that Utah's gambling laws apply to Kalshi. Kalshi kept taking bets from Utahns anyway. That is illegal, and we're putting a stop to it."

A Kalshi spokesperson told FOX 13 and the Deseret News: "This is a crazy overreach; Utah is clearly playing politics. We look forward to putting a stop to this in court, just like we did in Arizona."

A CFTC spokesperson, quoted by Front Office Sports, called Utah's approach "shameful, intimidation-style tactics in an effort to bully CFTC-registered exchanges."

## How does it fit the federal-versus-state fight?

The criminal case is the third track in Utah:

- **Kalshi v. Utah (federal court).** Kalshi sued Utah officials to block enforcement. The Deseret News, DeFi Rate and Front Office Sports date the suit to February 2026; Covers says April. On August 4, 2026, U.S. District Judge Robert J. Shelby granted summary judgment to Utah, ruling that the state's gambling laws apply to Kalshi's sports contracts and are not preempted. In September the Tenth Circuit denied Kalshi's emergency request for an injunction pending appeal, which DeFi Rate notes was not a merits ruling. Covers, citing Wallach, reported that 37 states filed an amicus brief in the Tenth Circuit supporting Utah on October 29.
- **Utah's civil suit.** On October 20, 2026, Brown sued Kalshi entities and two Susquehanna entities, alleging unlawful gambling, public nuisance, unjust enrichment and civil conspiracy (DeFi Rate). The 63-page complaint estimates Kalshi earned $30.5 million to $61.1 million from Utah accounts between February and October 19, 2026 (Deseret News). DeFi Rate, Brownstein and the CFTC describe it as a state court action; Front Office Sports described it as filed in federal court.
- **CFTC v. Utah.** The [CFTC announced](https://www.cftc.gov/PressRoom/PressReleases/9315-26) on October 27, 2026 that it had sued Utah. DeFi Rate reported that the Justice Department and the CFTC filed the complaint on October 26 and moved for a temporary restraining order and preliminary injunction on October 29; the sources reviewed did not report a ruling. The Deseret News quoted the 33-page complaint as arguing that federal law "expressly and impliedly preempts state gambling law as applied to event contracts." Chairman Michael S. Selig said: "Congress entrusted the CFTC to be the federal regulator with sole responsibility to oversee these markets." The release says the CFTC has proceedings against nine other states.

Arizona is the precedent Kalshi cites. Arizona filed criminal charges in March 2026, the first prosecution of a CFTC-registered prediction market operator, according to the Deseret News. A federal judge enjoined that prosecution and Arizona has appealed; KUER reported Arizona is seeking to revive the case after a Ninth Circuit ruling favorable to Nevada.

Other operators pulled back in Utah. Front Office Sports reported that DraftKings stopped offering sports, novelty and political contracts there and that FanDuel Predicts did the same from 10 a.m. ET on October 30. DeFi Rate reported that Fanatics Markets announced a broader withdrawal.

## Where do the circuit split and Supreme Court petitions stand?

DeFi Rate summarized the appellate picture as of November 6, 2026:

- **Third Circuit:** ruled for Kalshi in New Jersey (April 2026).
- **Ninth Circuit:** ruled against Kalshi in Nevada and denied panel and en banc rehearing.
- **Sixth Circuit:** ruled against Kalshi in its Ohio and Tennessee preliminary injunction appeals; rehearing is pending.
- **Second Circuit:** denied injunctions pending appeal in Kalshi's New York and Connecticut cases and Coinbase's Connecticut case, without reaching the merits.
- **Illinois:** a federal judge entered a preliminary injunction on October 30 against specified state enforcement involving regulated swaps; Illinois has appealed.

New Jersey asked the Supreme Court on September 2, 2026 to review the Third Circuit decision, [Connecticut Public](https://www.ctpublic.org/2026-09-02/new-jersey-asks-supreme-court-to-resolve-fight-over-kalshis-future) reported. The state's lawyers wrote: "Nothing in the Act gives the CFTC unprecedented authority to become the sole regulator of sports gambling in this country." Kalshi spokeswoman Dani Lever said the exchange "cannot be regulated by 50 different regulators."

On October 7, attorneys general from 39 states and the District of Columbia, led by Ohio Attorney General Andrew Wilson, filed an amicus brief backing New Jersey's petition, [CDC Gaming](https://cdcgaming.com/brief/tribe-39-state-attorneys-general-latest-to-ask-supreme-court-to-hear-prediction-markets-case/) reported. Kalshi's response, originally due November 9, is now due December 7 after an extension granted October 30, DeFi Rate reported. It said related Nevada petitions are also pending and that none has been granted.

## Timeline

- **February 2026:** Kalshi sues Utah officials in federal court (Deseret News, DeFi Rate; Covers reports April).
- **March 2026:** Arizona files the first criminal charges against Kalshi (Deseret News).
- **April 2026:** Third Circuit rules for Kalshi in New Jersey (Connecticut Public).
- **August 4, 2026:** Judge Robert J. Shelby grants summary judgment to Utah (KUER, Brownstein).
- **Late August 2026:** Ninth Circuit rules against Kalshi in Nevada (Connecticut Public).
- **September 2, 2026:** New Jersey petitions the Supreme Court (Connecticut Public).
- **September 2026:** Tenth Circuit denies Kalshi an injunction pending appeal (DeFi Rate).
- **September 13, 2026:** Utah investigator opens an undercover Kalshi account (Deseret News).
- **October 7, 2026:** 39 states and D.C. file an amicus brief backing New Jersey (CDC Gaming).
- **October 20, 2026:** Utah files a civil suit against Kalshi and Susquehanna entities (DeFi Rate).
- **October 26-27, 2026:** CFTC and Justice Department sue Utah; CFTC announces it October 27 (DeFi Rate, CFTC).
- **October 28, 2026:** Utah files criminal charges against KalshiEX LLC, Mansour and Lopes Lara (KUER, Deseret News).
- **October 29, 2026:** CFTC and DOJ seek a TRO and preliminary injunction against Utah; 37 states file a Tenth Circuit amicus brief for Utah (DeFi Rate, Covers).
- **October 30, 2026:** Kalshi's Supreme Court response deadline extended to December 7 (DeFi Rate).
- **December 4, 2026:** Initial appearance and arraignment set in Third District Court, Salt Lake City, at 8:30 a.m. (DeFi Rate, citing Daniel Wallach).
- **December 7, 2026:** Kalshi's response to New Jersey's petition due (DeFi Rate).

## FAQ

### What are the charges against Kalshi's founders in Utah?

Utah charged KalshiEX LLC, CEO Tarek Mansour and co-founder Luana Lopes Lara with a second-degree felony for a pattern of unlawful activity, 12 third-degree felony counts of online gambling promotion and one class A misdemeanor count of general gambling promotion. The charges were filed on October 28, 2026.

### Were Kalshi's founders arrested in Utah?

No. Utah sought summonses rather than arrest warrants, and Mansour and Lopes Lara were issued summonses to appear in court. The charges are allegations, and no court has ruled on them.

### When is Kalshi's court date in Utah?

DeFi Rate, citing a post by gaming attorney Daniel Wallach, reported that Kalshi has been summoned to personally appear in Third District Court in Salt Lake City on December 4, 2026 at 8:30 a.m. for an initial appearance and arraignment.

### What did Kalshi say about the Utah charges?

A Kalshi spokesperson said: "This is a crazy overreach; Utah is clearly playing politics." The company added that it looks forward to stopping the case in court, "just like we did in Arizona."

### Has the Supreme Court agreed to hear a Kalshi case?

As of November 6, 2026, no. New Jersey filed a petition on September 2, 2026 asking the Court to review the Third Circuit's ruling for Kalshi, and DeFi Rate reported that none of the pending petitions has been granted.

## Sources

- [Utah ups the ante in Kalshi gambling fight with felony charges](https://www.kuer.org/politics-government/2026-10-28/kalshi-prediction-market-utah-gambling-criminal-charges), KUER, 2026-10-28
- [Utah files criminal charges against popular prediction market platform](https://deseret.com/sports/2026/10/28/utah-files-criminal-charges-kalshi-illegal-gambling-promotion-cftc-sues-utah-block-laws), Deseret News, 2026-10-28
- [Utah levels criminal charges against Kalshi and some of its executives](https://www.fox13now.com/news/politics/utah-levels-criminal-charges-against-kalshi-and-some-of-its-executives), FOX 13 News, 2026-10-28
- [Front Office Sports newsletter, Thursday, October 29, 2026](https://frontofficesports.com/?p=254545), Front Office Sports, 2026-10-29
- [Utah Files Criminal Gambling Charges Against Kalshi Executives](https://www.covers.com/industry/utah-files-criminal-gambling-charges-against-kalshi-executives-oct-29-2026), Covers, 2026-10-29
- [Kalshi's Co-Founders Are Charged With Felony Gambling Counts in Utah](https://finance.yahoo.com/markets/stocks/articles/kalshi-co-founders-charged-felony-110705888.html), 24/7 Wall St. via Yahoo Finance, 2026-10-29
- [Prediction Markets Dispute Escalates: Utah Files Felony Criminal Charges Against Kalshi and Co-Founders](https://www.bhfs.com/insight/prediction-markets-dispute-escalates-utah-files-felony-criminal-charges-against-kalshi-and-co-founders/), Brownstein Hyatt Farber Schreck, 2026-11-03
- [Kalshi Founders Face Utah Summonses as Gambling Fight Turns Personal](https://defirate.com/news/kalshi-founders-utah-summonses/), DeFi Rate, 2026-11-06
- [CFTC Sues to Block State Enforcement in Utah Amid Ongoing Efforts to Preserve Jurisdiction (Release No. 9315-26)](https://www.cftc.gov/PressRoom/PressReleases/9315-26), Commodity Futures Trading Commission, 2026-10-27
- [New Jersey asks Supreme Court to resolve fight over Kalshi's future](https://www.ctpublic.org/2026-09-02/new-jersey-asks-supreme-court-to-resolve-fight-over-kalshis-future), Connecticut Public, 2026-09-02
- [Tribe, 39 state attorneys general latest to ask Supreme Court to hear prediction markets case](https://cdcgaming.com/brief/tribe-39-state-attorneys-general-latest-to-ask-supreme-court-to-hear-prediction-markets-case/), CDC Gaming, 2026-10-07