SALT LAKE CITY — The predictive market company Kalshi warned that the state of Utah is poised to take action against it unless federal judge intervenes.
"Kalshi and its personnel meanwhile face criminal exposure... and unrecoverable losses... because Defendants are unwilling to stay enforcement pending the resolution of Kalshi’s appeal," the company's attorneys said in a recent filing in federal court, renewing a request for an injunction.
U.S. District Court Judge Robert Shelby ruled that Utah can enforce its anti-gambling laws against Kalshi and other predictive markets. Utah has a constitutional prohibition against gaming, but Kalshi has argued that its market contracts aren't gambling and are governed by federal commodities laws. Kalshi pre-emptively sued Utah to block the state from taking any action.
Now, the company argues that Utah has declined to hold off on any action under anti-gambling laws while it appeals to the 10th U.S. Circuit Court in Denver. In an interview with FOX 13 News last week, Utah Attorney General Derek Brown signaled his office would take some type of action against Kalshi and other predictive markets.
In its own filing, the Utah Attorney General's Office suggested Kalshi has the capabilities of blocking states.
"At no point has Kalshi been immune or exempt from Utah state law. And, with the exception of a brief stipulated stay of enforcement during the briefing period, Utah has always been free to bring an enforcement action against Kalshi," assistant Sttorney General Joshua Cutler wrote. "Indeed, the only relief Kalshi sought in this case was to alter the status quo by obtaining an injunction. Now that Kalshi has lost on the merits, it should not be awarded the relief to which the Court has already concluded Kalshi is not entitled."
Court records indicate Judge Shelby has not ruled on the request for a new injunction.
