Utah Brings Felony Gambling Cases Against Kalshi and Its Co-Founders
The state says an undercover agent placed 12 sports wagers after confirming he was in Utah.
The state says an undercover agent placed 12 sports wagers after confirming he was in Utah.
Bettors staked more than $2.4 billion, while a lower sportsbook hold cut operator revenue and sharpened debate over prediction markets.
Conflicting federal appeals rulings have left the status of sports-event contracts divided between CFTC oversight and state gambling law.
Attorney General Catherine Hanaway says the companies must obtain gaming licences, meet age controls and pay state taxes or face enforcement.
A joint stipulation bars state action while Kalshi seeks further review of the Nevada sports-contracts ruling.
Stop Predatory Gambling says prediction-market promotions exposed the USTA’s junior audience to gambling risks as tennis trading surged during the tournament.
The trade group says sports-event contracts are bets in substance and should stay within state gambling rules.
The USTA also barred rival prediction-market ads in the arena and on TV, including ESPN
The state wants to bar the prediction-market platform from offering unlicensed event contracts after an earlier injunction fight failed.
The 3-0 ruling said the wagers are sports bets, not swaps, in a setback for Kalshi, Crypto.com and Robinhood.
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