Utah has raised the stakes in the ongoing clash over prediction markets, filing felony criminal charges against Kalshi and two of its top executives, CEO Tarek Mansour and COO Luana Lopes Lara. The state alleges the company’s contracts violate Utah’s anti-gambling laws, marking a sharp escalation from the civil and administrative actions that have defined most of the state-level pushback against these platforms.

The move stands out because Kalshi operates as a federally regulated prediction-market exchange, and its legal position has generally centered on the argument that its event contracts fall under federal commodities oversight rather than state gambling prohibitions.

KalshiEX LLC has filed a motion for an injunction in the Second Circuit, signaling that the dispute has reached a stage where ordinary appellate timing may not be enough to protect the company’s position.