SALT LAKE CITY — The predictive markets company Kalshi has revived its request for a preliminary injunction against the state of Utah.
In new court documents obtained by FOX 13 News, Kalshi said it had received information that the state was planning to take action against the company under Utah's anti-gambling laws. The company previously sued the state worried about enforcement before dropping an initial injunction request.
"On April 22, 2026, counsel for Defendants informed Kalshi that Utah intends to commence enforcement proceedings following a 30-day notice period. Defendants have not agreed to stay enforcement beyond that period. Kalshi therefore respectfully requests that this Court issue a preliminary injunction," Kalshi attorney Annika Jones wrote in a motion to a federal court.
Utah political leaders have long maintained that predictive markets, like those Kalshi engages in, are gambling which is prohibited by the state constitution. Kalshi argues in court documents that it offers contracts that are governed by a different set of laws and the Commodity Futures Trading Commission. The website and app allows people to place money and trade on real-world events from sports games to politics.
In an affidavit filed with the injunction request, Kalshi's head of markets, Xavier Sottile, wrote that "without an injunction, Kalshi will be forced into an impossible choice. It must either decline to comply with Utah’s threats, subjecting itself and its representatives to the risk of criminal liability."
"Or it must attempt to comply with Utah law and exit the market, thereby subjecting itself and its users to a host of harms that could not be repaired even if Kalshi ultimately succeeds in this case," Sottile added.
Theoretically, the company claims that Utah could force Kalshi to cease offering contracts within the state, which it says could be technologically difficult.
"For Kalshi to do so, it would have to, first, undertake efforts to geolocate which of its users are in Utah, and, second, bar access to all event contracts for those users. This would require Kalshi to geolocate all of its users at all times and have a process to continually void event contracts and refund deposits for people who enter the state of Utah. I have engaged in internal discussions with our leadership and technical team to determine the feasibility of compliance of all of these demands. Compliance would be difficult to implement even under a relaxed timeline and could not be done immediately," Sottile wrote.
Kalshi had been blocked in a case brought by Nevada's Gaming Control Board, the Nevada Independent reported earlier this month. The 9th U.S. Circuit Court of Appeals is taking it up.
A review of the court docket in Utah shows U.S. District Court Judge Robert Shelby has taken Kalshi's request under advisement but no hearing has been scheduled.
