Utah Sues Kalshi and Susquehanna, Citing Up to $61M in…
By Abdelaziz Fathi
AI summary of the source article
Utah filed a civil lawsuit against prediction market operator Kalshi and two Susquehanna trading firms, alleging illegal gambling that generated an estimated $30.6 million to $61.2 million in fees. The state seeks injunctions, restitution, and geolocation controls.
Why it matters
That matters for exchange economics because liquidity providers help maintain executable prices and trading depth. Reduced market-maker participation could widen spreads or make smaller event markets less attractive to customers.
Key facts
- Utah Attorney General Derek Brown filed the lawsuit on October 20 against five Kalshi entities, Susquehanna International Group, and Susquehanna Government Products.
- The complaint estimates Utah-linked accounts traded over 3.06 billion contracts through October 19, generating an estimated $30.6 million to $61.2 million in fees.
- The state is seeking preliminary and permanent injunctions against sports, election, politics, culture, and "mentions" contracts, as well as damages and restitution.
Source excerpt · FinanceFeeds
Utah has filed a civil lawsuit against prediction market operator Kalshi and two Susquehanna trading firms, alleging illegal gambling operations that generated an estimated $30.6 million to $61.2 million in fees from Utah accounts. The case extends the state's regulatory challenge beyond the exchange itself to firms providing liquidity for its event contracts. Attorney General Derek Brown filed th…