Utah Charges Kalshi and Co-Founders with Illegal Gambling Promotion

by Mohamed Farouk

an hour ago

Made with AI

Utah has taken legal action against KalshiEX LLC and its leadership, alleging violations related to illegal gambling activities within the state. According to the assessment of specialists presented in the publication, this move highlights the ongoing tension between state regulations and federally registered entities operating in the online gambling space.

Charges Against KalshiEX LLC and Executives

The charges against KalshiEX LLC, along with its CEO Tarek Mansour and COO Luana Lopes Lara, include the following counts:

one count of a pattern of unlawful activity
twelve counts of online gambling promotion
one count of gambling promotion

State's Stance on Gambling Legality

Utah Attorney General Derek Brown emphasized that gambling remains illegal in the state, asserting that federal registration does not provide immunity from state laws.

Details of the Undercover Investigation

The allegations stem from an undercover investigation in which a special agent successfully placed sports wagers while confirming his presence in Utah. This investigation has raised significant concerns about the compliance of online gambling platforms with state regulations.

Kalshi's Response to the Charges

In response to the charges, Kalshi has announced its intention to contest the allegations in court, indicating a potential legal battle ahead.

Sorare is currently facing legal challenges from the UK Gambling Commission over its operations, which raises questions about the classification of its blockchain-based game. This situation contrasts with Utah's recent legal actions against KalshiEX LLC for alleged illegal gambling activities. For more details, see read more.

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