Utah sues Kalshi and Susquehanna firms over alleged illegal gambling

On October 20, Utah sued Kalshi’s five companies and two Susquehanna trading entities, alleging illegal gambling and seeking restitution, injunctions and return of money collected. The state named Susquehanna International Group and Susquehanna Government Products, which it says act as market makers by taking the opposite side of retail trades and providing pricing that keeps trading going. Utah estimates Kalshi took in $30.6 million to $61.2 million in fees from state accounts. Kalshi, which runs a Commodity Futures Trading Commission-regulated designated contract market, says its event contracts are federally regulated and cannot be classified as illegal gambling; Utah says federal law preserves state enforcement. A Utah court rejected Kalshi’s federal-supremacy argument on August 4; federal circuits split.