On Wednesday, Utah became the first state to file felony criminal charges directly against Kalshi’s prediction market co-founders Tarek Mansour and Luana Lopes Lara. Citing illegal online gambling, Kalshi and its two most prominent executives were charged with 13 felony counts and one misdemeanor count tied to a “pattern of unlawful activity” following an investigation conducted by the state attorney general’s office.
“Gambling is illegal in Utah, whether you place the bet, run the game, or promote it,” said Utah AG Derek Brown in a statement released to local media outlets on Wednesday. “Calling it a ‘prediction market’ doesn’t change what it is, and being federally registered doesn’t put a company above the law. A federal court has already ruled that Utah’s gambling laws apply to Kalshi. Kalshi kept taking bets from Utahns anyway. That is illegal, and we’re putting a stop to it.”
Local ABC affiliate coverage provided by News4Utah quoted Kalshi’s response to the criminal charges, which the federally regulated prediction exchange labeled as “crazy overreach.”
Below, our readers will find a list of reactionary FAQs as they relate to Utah’s criminal charges against Kalshi and its co-founders.
Technically, Utah could issue warrants that would result in the immediate arrest of both Tarek Mansour and Luana Lopes Lara upon entering the state. If the state then decides to upload those warrants (which haven’t been issued yet) into the federal NCIC database, then both individuals would become visible to authorities during airport customs screenings and routine background checks.
However, the CFTC’s lawsuit against Utah, filed earlier this week, could serve to “freeze” or “pause” such enforcement actions until the case is fully litigated. For such a freeze or pause to occur, a federal court would have to issue a temporary restraining order. Longer-term “injunctive relief” could also be provided to Kalshi via a court ruling, but Utah’s sovereign enforcement actions are not automatically paused just because the CFTC filed suit against the state on Tuesday.
In August, a federal court paved the way for Utah to seek enforcement actions against Kalshi. The ruling, issued by US District Judge Robert J. Shelby, “held that federal commodities law does not override Utah’s power to ban gambling within its borders.”
Yes. In February of this year, the state of Arizona charged Kalshi with running an “illegal gambling operation.” The 20 counts included in Arizona’s criminal complaint were all misdemeanors. The CFTC eventually secured a temporary restraining order against Arizona (our readers can download that official court order here, directly from the CFTC’s database). The federal agency also published an official April 10th, 2026, press release that announced the TRO.
Due to the ongoing high-stakes legal battles between the federal government and many state attorneys general (not to mention Kalshi’s continued operation in most US jurisdictions), the CFTC is likely to explore similar avenues to block Utah’s most recent enforcement actions. Under Utah law, a “pattern of unlawful activity” is a second degree felony, punishable by 1-15 years in prison and a fine up to $10,000. The other 12 felony counts brought by Utah are categorized as lesser “third degree” crimes but still possess their own penal guidelines.
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