Utah Files Suit Against Kalshi to Enjoin Prediction Contracts and Recover $30.6-$61.2 Million in Alleged Fees

Utah Attorney General Derek Brown has filed a 63-page lawsuit against prediction market platform Kalshi and two Susquehanna market maker firms. The complaint seeks preliminary and permanent injunctions to block sports, elections, politics, culture and mentions-based contracts in the state, enforced via third-party geolocation. It also pursues restitution, damages, disgorgement of profits, public nuisance and civil conspiracy claims.

The filing compares Kalshi to “the manager of a back-alley gambling den (or cardroom)” for facilitating wagers and taking a percentage cut. Brown stated that Kalshi “runs an online casino in Utah and calls it a prediction market. That violates Utah law.” Court records show 32,940 accounts with Utah addresses as of February 2026. The state estimates fees collected from those accounts fall between $30.6 million and $61.2 million, with roughly $5.5 million in associated bettor losses.

This state-court action follows an August federal ruling by U.S. District Judge Robert Shelby. He held that the Commodity Exchange Act does not preempt Utah’s gambling laws, marking the first final merits judgment in such litigation. Kalshi appealed to the Tenth Circuit, which denied an emergency injunction in September. The company is expected to seek removal of the latest suit to federal court.

Industry Headwinds Reflected in Restructuring, Regulation and Revenue Data

Flutter plans up to 1,400 job cuts across its UK and Ireland business after the online gaming tax rose from 21% to 40% in April 2026, with sports betting duties scheduled to increase from 15% to 25% in April 2027. Restructuring costs are estimated at $80 million to $90 million in Q4. Kevin Harrington, Flutter UK and Ireland CEO, said the company could not fully absorb the increases without lowering its fixed cost base. The division employs approximately 9,000 people.

New Jersey became the first state to mandate data-driven responsible gaming requirements for online operators. The Division of Gaming Enforcement issued $98,350 in penalties against three sportsbooks: $78,000 to TheScore for unauthorized wagers, $14,350 to DraftKings for self-exclusion violations, and $6,000 to Fanatics tied to odds errors. A Wisconsin radio host, Joseph Giganti Sr., sued election officials over warnings that prediction market wagers could cost him voting eligibility. FanDuel canceled a planned VIP zoo event after regulatory guidance. A University of Bristol study found the Premier League shirt sponsor ban produced only a 10.5% drop in live-match gambling messages, with overall exposure 41.6% higher than in 2023. Massachusetts gaming revenue reached $153.88 million in September 2026, up 4% year-over-year.

These developments, as reported by Gambling Insider, underscore distinct but simultaneous pressures on operators from litigation, taxation and consumer-protection rules.

Reporting: Gambling Insider

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