Utah Brings Criminal Charges Against Kalshi Founders Following Civil Suit

Utah has filed criminal charges against prediction market operator Kalshi and its two founders. CEO Tarek Mansour and COO Luana Lopes Lara are named as co-defendants in a complaint that alleges continued illegal gambling operations in the state.

The charges consist of one second-degree felony count of pattern of unlawful activity, 12 third-degree felony counts of online gambling promotion, and one class A misdemeanor count of general gambling promotion. An undercover investigator from the Utah Attorney General’s Office opened a Kalshi account and placed 12 sports wagers totaling approximately $115 on NFL, college football, MLB, MLS, and NHL events between September 13 and 26. Prosecutors state that Kalshi collected fees despite awareness of the user’s Utah location and that Mansour and Lopes Lara maintained control while participating in a pattern of unlawful activity.

The criminal complaint references a federal judge granting Utah summary judgment in August and the Tenth Circuit’s denial of Kalshi’s motion for an injunction pending appeal. The charges follow Utah’s civil lawsuit from the prior week seeking to block operations and recover proceeds. On October 26 the CFTC and Crypto.com filed separate federal lawsuits challenging Utah’s authority. Utah becomes the second state after Arizona to pursue criminal charges; the CFTC had secured an injunction blocking Arizona’s efforts in May.

Rutgers Study Documents 42.7% Teen Gambling Participation Rate

A Rutgers University national study determined that 42.7% of Americans ages 13 to 17 participated in some form of gambling over the past year, with approximately 11% of those teenage gamblers classified as high risk for problem gambling. The survey of 1,677 individuals ages 13 to 27 found 52.5% had gambled in the previous year, while 18.9% of the 13-to-17 group gambled at least weekly.

Sports betting accounted for 20.7% participation in the full sample and prediction markets for 6.6%. Roughly 40% of prediction-market participants were classified as high risk. Family gambling exposure stood out: 75.5% of high-risk teenage gamblers reported a family member who gambled and 61.2% had gambled with a family member.

As reported by Gambling Insider, the criminal escalation in Utah and the Rutgers youth data arrive at the same moment. The overlap frames a concrete compliance risk for platforms that must now weigh continued legal challenges against measurable underage exposure patterns.