Utah sues Kalshi and Susquehanna in state court in October 2026, estimating up to $61 million in fees from Utah accounts
Utah sues Kalshi and Susquehanna in state court
On 20 October 2026 the Utah Attorney General filed a state court complaint alleging that Kalshi's sports, election and other event contracts are illegal gambling in Utah. It names seven Kalshi and Susquehanna entities and asks for an injunction, disgorgement and a court-approved geolocation provider.
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Utah's attorney general sued Kalshi in state court on 20 October 2026, alleging that its sports, election and other event contracts are illegal gambling under Utah law. The complaint, filed in the Third Judicial District Court in Salt Lake County, estimates that Kalshi collected between $30,591,600 and $61,183,200 in fees from Utah accounts as of 19 October.
It names seven entities: Kalshi Inc., KalshiEX LLC, Kalshi Klear Inc., Kalshi Klear LLC, Kalshi Trading LLC, Susquehanna International Group, LLP and Susquehanna Government Products LLLP. Susquehanna is described as a market maker on the platform. Kalshi spokesperson Jacki McGavick told the Deseret News that "no single state should have a veto over it" and that "this latest state court action does not affect our ongoing federal litigation." SBC Americas reported no response from Susquehanna.
What the document says
The attorney general's release sets out the state's position in one line.
Kalshi runs an online casino in Utah and calls it a prediction market. That violates Utah law.
The complaint alleges that the defendants offer, facilitate and profit from gambling in Utah, and that the activity is a public nuisance. These are allegations; no court has ruled on them. Its figures rest on a 25 February 2026 filing in which, the complaint says, Kalshi's Head of Markets testified that 55,819 accounts had a Utah address and 32,940 had completed sign-up.
The fee range is the state's own estimate. It takes Utah accounts' 1.11 percent share of Kalshi's open positions on 25 February, assumes that share held across the platform's lifetime, which gives more than 3,059,160,000 wagers, then applies a fee of $0.01 to $0.02 per wager. The complaint says the true count is in Kalshi's possession and "could be more or less than these estimates".
The prayer for relief asks the court to declare the wagers illegal in Utah, grant preliminary and permanent injunctions, order restitution and damages, an equitable accounting and disgorgement, abate the nuisance, and award punitive damages. The injunction count also asks the court to require a third-party geolocation provider approved by the court.
What it changes for users
Nothing yet. A complaint is a request, not an order, and the release does not say Kalshi has stopped serving Utah. If an injunction is granted, Utah residents could lose access to the covered contracts. The complaint lists sports, election and politics, culture and mentions contracts.
Background
The suit follows a federal case Kalshi brought against Utah officials in February 2026. The release says U.S. District Judge Robert Shelby granted summary judgment to Utah in August, and the Tenth Circuit on 8 September denied Kalshi's request to block enforcement while it appeals. That appeal remains pending.
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.
How other states and courts have treated Kalshi is set out in is Kalshi gambling. Ohio's separate move against its own licensees is in the Ohio brief. State rules are on the Utah page.
Quick answers
Who is Utah suing over Kalshi?
Seven entities: five Kalshi companies and two Susquehanna companies, plus unnamed defendants. The case was filed on 20 October 2026 in the Third Judicial District Court in Salt Lake County.
How much does Utah say Kalshi made from Utah users?
Between $30,591,600 and $61,183,200 in fees as of 19 October 2026. The complaint calls this an estimate built on public data and one Kalshi court filing.
Is Kalshi banned in Utah now?
No court order in this new case was found as of 24 October 2026. The state is asking for preliminary and permanent injunctions, and the federal appeal on whether Utah law applies is still pending.
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
- Utah Attorney General, Utah sues Kalshi, alleging its prediction market is gambling, 20 October 2026, retrieved 24 October 2026
- Brown v. Kalshi Inc. et al., verified complaint and jury demand, Third Judicial District Court, Salt Lake County (copy published by Utah News Dispatch), retrieved 24 October 2026
- Deseret News, Utah sues Kalshi, statement from Kalshi spokesperson Jacki McGavick, 20 October 2026, retrieved 24 October 2026
- Covers, Utah sues Kalshi, Susquehanna for alleged illegal gambling, 21 October 2026, retrieved 24 October 2026
- SBC Americas, Utah sues Kalshi, but a new target raises bigger questions, 21 October 2026, retrieved 24 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.