Utah Sues Kalshi and Two Susquehanna Firms Over Betting

Utah Attorney General Derek Brown filed a civil lawsuit on October 20, 2026 against prediction market Kalshi and two trading firms linked to Susquehanna. The state estimates Kalshi collected between $30.6 million and $61.2 million in fees from Utah accounts and wants the money returned.

Details

The suit was filed in a Utah state court. Defendants include Kalshi's corporate entities (five, per The Block), plus Susquehanna International Group and Susquehanna Government Products. The state says Kalshi has offered bets to Utah residents since September 2024, and the fee figures run through October 19. Utah itself cautions that the real number could differ significantly.

The state asks the court to order the return of allegedly illegal proceeds, compensate the state and residents, and bar sports, election, politics, culture and "mention" bets. It also seeks stricter location verification for users. Cointelegraph reports that Brown said the operation causes "significant and substantial ongoing harm" to residents. Neither The Block nor Cointelegraph carried a Kalshi response.

The two sides have history: in February Kalshi sued Utah officials in federal court, and a judge later sided with the state. Similar fights are under way elsewhere; Crypto.com and Novig recently sued Missouri's attorney general (see our earlier report).

What This Means for the Market

Naming the Susquehanna firms, which the outlets describe as market makers on the platform, widens the circle of companies states are willing to pursue. The topic matters for crypto because the same legal questions apply to Polymarket and other venues offering event contracts. The outcome hinges on whether courts accept federal CFTC primacy; we covered the CFTC's proposal to classify such contracts separately. The daily market summary is at /en/. This is not investment advice.