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Utah AG Charges Kalshi With 12 Illegal Gambling Counts

By Drooid · Oct 29, 2026 · How we work

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Summary

Utah Attorney General Derek Brown charged Kalshi Inc. and its co-founders.
The complaint lists 12 illegal gambling counts, a pattern-of-unlawful-activity felony, and a misdemeanor.
Brown said Kalshi kept taking Utah bets after a federal judge applied state gambling laws.
Donald Trump Jr. is a paid advisor to Kalshi and Polymarket.
Analysts say the dispute could reach the U.S. Supreme Court, possibly hearing arguments in early 2027.

History

The Supreme Court’s May 14 2018 ruling in Murphy v. NCAA declared PASPA unconstitutional, a 7-2 decision that freed states to legalize sports betting. New Jersey quickly licensed DraftKings and FanDuel, spurring $8.5 billion in wagers by 2023 and prompting 27 states to permit online betting by 2026. Utah’s indictment of crypto-betting platform Kalshi reflects the same post-Murphy regulatory surge.

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The Supreme Court’s May 14 2018 ruling in Murphy v. NCAA declared PASPA unconstitutional, a 7-2 decision that freed states to legalize sports betting. New Jersey quickly licensed DraftKings and FanDuel, spurring $8.5 billion in wagers by 2023 and prompting 27 states to permit online betting by 2026. Utah’s indictment of crypto-betting platform Kalshi reflects the same post-Murphy regulatory surge.

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