Utah files criminal charges against prediction market Kalshi and company co-founders

Firm calls charges, which include violating state gambling ban and profiting from illegal activity, ‘crazy overreach’

Utah on Wednesday filed criminal charges against prediction market operator Kalshi and two of its executives, months after a federal judge rejected Kalshi’s effort to prevent Utah from enforcing its strict anti-gambling laws against the activity.

The felony charges could represent a new tactic in how states try to assert regulatory authority over the fast-expanding activity, a clash that appears headed to a showdown at the US supreme court.