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Federal agencies challenge Utah’s bid to restrict Kalshi event contracts

SCCG reports the CFTC and the Department of Justice filed a 33-page federal complaint seeking to stop Utah Attorney General Derek Brown from applying state gambling restrictions, election betting prohibitions or public nuisance laws to CFTC-registered exchanges, after Utah sued Kalshi and two Susquehanna trading firms on October 20. Utah seeks to block contracts on sports, elections, politics and culture for state residents and estimates Kalshi collected between 30.6 million and 61.2 million dollars in fees from Utah accounts.

The CFTC and the Department of Justice have filed a 33-page federal complaint seeking to prevent Utah from enforcing certain state laws against CFTC-registered exchanges, according to SCCG. It is their tenth state case and the first against a Republican-led state.

Federal challenge follows Utah lawsuit

The complaint seeks to stop Utah Attorney General Derek Brown from applying state gambling restrictions, election betting prohibitions or public nuisance laws to those exchanges, SCCG reported.

The federal action follows Utah’s October 20 lawsuit against Kalshi and two Susquehanna trading firms. Utah is seeking to block state residents from accessing contracts covering sports, elections, politics and culture.

Fees and access at issue

Utah estimates that Kalshi collected between 30.6 million and 61.2 million dollars in fees from Utah accounts, according to SCCG. That range is the state’s estimate, rather than an established finding.

The competing lawsuits put both state-level access to event contracts and the application of Utah law to CFTC-registered exchanges at issue. The federal complaint seeks to halt state enforcement; Utah’s lawsuit seeks restrictions across several contract categories.

What it means for prediction markets

  • Access is at stake: Utah’s requested restrictions cover sports, elections, politics and culture contracts for state residents.
  • The dispute extends beyond Kalshi: The federal complaint seeks protection from the specified state enforcement measures for CFTC-registered exchanges.
  • The litigation has widened: According to SCCG, this is the agencies’ tenth state case and their first against a Republican-led state.
  • Requests are not rulings: The reported actions describe what federal agencies and Utah are seeking, not a judicial resolution.
KalshiCFTCElectionsInfiniti MarketsInfiniti Signals

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