Overview
- KalshiEX LLC filed a federal lawsuit on Feb. 23 seeking an injunction to stop Utah from enforcing state gambling laws against its CFTC‑regulated event‑contract exchange.
- The complaint names Gov. Spencer Cox and Attorney General Derek Brown, citing their public statements labeling prediction markets as illegal gambling in Utah.
- Kalshi argues Congress granted the Commodity Futures Trading Commission exclusive jurisdiction over trading on federally regulated exchanges, making state enforcement improper.
- Utah lawmakers are advancing HB243 to define and prohibit proposition betting, with the bill passing the House and a Senate committee and awaiting a floor vote.
- The case unfolds as the CFTC chair publicly asserts full authority over prediction markets and courts issue split rulings, with Kalshi noting injunction wins in Tennessee and New Jersey and an adverse decision in Maryland.