The Commodity Futures Trading Commission and the US Department of Justice filed suit on October 26, 2026, in the US District Court for the District of Utah against the state and Attorney General Derek Brown. The federal government seeks preliminary and permanent injunctions to prevent Utah from enforcing its constitutional gambling ban against prediction markets regulated by the CFTC. Utah accuses Kalshi of enabling illegal gambling, wants its operations in the state halted and is seeking between $30.6 million and $61.2 million in fees, while the platform reportedly had more than 32,000 accounts in Utah as of early 2026. In August 2026, a federal judge already ruled that federal commodities law did not preempt Utah’s anti-gambling laws for Kalshi’s sports-related contracts. This new action, the tenth federal intervention in a similar jurisdictional dispute, could result in Kalshi exiting Utah and repaying tens of millions of dollars.
Source: Read the original article
