CFTC sues Utah in October 2026 to block its gambling case against Kalshi, the tenth state it has taken to court
CFTC sues Utah over prediction market enforcement
The CFTC and the United States sued Utah and its attorney general in federal court, asking a judge to bar the state from enforcing its gambling laws against contracts on CFTC-regulated exchanges. The suit answers Utah's 20 October case against Kalshi and Susquehanna.
Piece published Reviewed by CryptoGuardz Register Desk, editorial desk
The Commodity Futures Trading Commission sued Utah in federal court on 26 October 2026 and announced the case the next day. The complaint, brought with the United States against the State of Utah and Attorney General Derek Brown, asks the U.S. District Court for the District of Utah to stop the state enforcing its gambling laws against contracts on CFTC-regulated exchanges. The CFTC says it has started proceedings against nine other states.
The suit responds to Utah's own case. On 20 October Utah sued Kalshi and two Susquehanna companies in state court, alleging that Kalshi's event contracts are illegal gambling, as set out in the Utah lawsuit brief.
What the document says
The release quotes CFTC Chairman Michael S. Selig.
Utah seeks to shut down prediction markets across a wide variety of markets.
The complaint, case number 2:26-cv-01055 in the Central Division, has one count under the Supremacy Clause of the U.S. Constitution. It argues that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over swaps traded on designated contract markets, that event contracts are swaps under the Act's definition, and that Utah's laws are therefore preempted. It cites the state case, Brown v. Kalshi Inc., No. 260908356, filed in the Third Judicial District Court in Salt Lake County.
It asks for a judgment that Utah's laws are "preempted, unconstitutional, and invalid" as applied to transactions on CFTC-regulated exchanges, and for a preliminary and permanent injunction stopping Utah from investigating CFTC-regulated entities and their affiliates and partners, or enforcing state law against transactions on CFTC-regulated exchanges. The complaint states:
The enforcement of a preempted state law is never in the public interest.
The nine other states named in the complaint are Arizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, New York, Rhode Island and Wisconsin. The release adds that the CFTC has filed briefs in four federal courts of appeal and one state supreme court.
What it changes for users
Nothing yet. A complaint is a request, not a ruling. Utah's state case against Kalshi is still open, and no order in either case was found as of 28 October 2026. The Block reported that the Utah attorney general's office did not immediately respond to a request for comment.
If a federal judge grants the injunction as requested, Utah would be barred, while the order stands, from enforcing its laws against trading on CFTC-regulated exchanges, which covers its case against Kalshi. If the court refuses, the state case can continue, and Utah has asked that court for injunctions barring the defendants from offering the covered contracts in Utah, enforced through a court-approved geolocation provider.
Background
Utah's complaint estimates that Kalshi collected $30.6 million to $61.2 million in fees from Utah accounts as of 19 October 2026, a figure the state calls an estimate. In an earlier federal case Kalshi brought, the Utah attorney general says a judge ruled for Utah in August and Kalshi's appeal is pending. How courts in other states have read the same question is set out in is Kalshi gambling. The same week, the CFTC signed a memorandum of understanding with the NBA on game integrity, covered in the NBA and CFTC brief.
Gambling is illegal in Utah. Kalshi advertised its sports and election bets as “legal in all 50 states” anyway. Utah is suing, alleging Kalshi kept taking bets from Utahns after a federal judge rejected its argument that Utah law doesn’t apply.
Quick answers
Why is the CFTC suing Utah?
The CFTC says federal law gives it exclusive jurisdiction over event contracts on registered exchanges, so Utah cannot apply its gambling laws to them. It filed after Utah sued Kalshi on 20 October 2026.
How many states has the CFTC sued over prediction markets?
Utah is the tenth. The release says the CFTC has started proceedings against nine other states, and the complaint names them.
Is Kalshi still available in Utah?
No court order blocking Kalshi in Utah was found as of 28 October 2026. Both the state case and the federal case are at the complaint stage.
Call 1-800-GAMBLER (1-800-426-2537). The National Problem Gambling Helpline is 1-800-MY-RESET (1-800-697-3738), with call, text and chat. More options are on the responsible gambling page.
Sources
- CFTC press release 9315-26, CFTC Sues to Block State Enforcement in Utah Amid Ongoing Efforts to Preserve Jurisdiction, 27 October 2026, retrieved 28 October 2026
- United States and CFTC v. State of Utah and Derek Brown, complaint for declaratory and injunctive relief, D. Utah, No. 2:26-cv-01055, retrieved 28 October 2026
- The Block, CFTC sues Utah as battle over prediction market regulation intensifies, 27 October 2026, retrieved 28 October 2026
- Sports Betting Dime, CFTC sues Utah to block state enforcement of sports event contracts, 27 October 2026, retrieved 28 October 2026
- Utah Attorney General, Utah sues Kalshi, alleging its prediction market is gambling, 20 October 2026, retrieved 28 October 2026
About this piece
Compiled by the CryptoGuardz register team from the sources listed above. Research and drafting are AI-assisted and reviewed by a named editor before publication. Nothing here is a recommendation to gamble. If a figure or a reading is wrong, tell us and the correction is logged in public.