UPDATE: Utah charges Kalshi co-founders with felony pattern of unlawful activity
CIE News ·
Update to Utah files criminal charges against Kalshi over alleged illegal gambling
Based on reporting by Decrypt; not yet independently confirmed.
Utah has filed felony and misdemeanor charges against Kalshi and its co-founders following an undercover probe, alleging illegal sports bets in the state. Kalshi said it will fight the charges in court.
Utah prosecutors have filed criminal charges against Kalshi co-founders Tarek Mansour and Luana Lopes Lara alongside the platform entity, according to charging documents reported by Decrypt. As previously reported, the state initiated criminal action against Kalshi over alleged illegal gambling operations.
KalshiEX LLC, CEO Mansour, and COO Lopes Lara each face one count of pattern of unlawful activity, a second-degree felony, 12 counts of online gambling promotion, which is a third-degree felony, and one misdemeanor count of gambling promotion. Charging documents state that an undercover agent with the Utah State Bureau of Investigation opened an account as a resident in September and placed 12 sports bets after passing a location check inside the state.
Utah Attorney General Derek Brown stated that federal registration does not place a firm above state gambling prohibitions. Kalshi described the action as overreach and stated it plans to contest the matter in court.
Key facts
- Second-degree felony charge
- 12 online gambling counts
- Mansour and Lopes Lara charged
- Undercover bets in September