Utah just turned the prediction-market fight criminal: felony charges against Kalshi and its two co-founders over sports wagers. An undercover state agent placed 12 bets in September, and Kalshi calls

What happened: Utah filed felony charges against Kalshi, CEO Tarek Mansour and COO Luana Lopes Lara, accusing them of illegally promoting gambling in the state. Key numbers: One second-degree felony count of pattern of unlawful activity, 12 third-degree felony counts of online gambling promotion, one misdemeanor gambling promotion count. Why it matters: Kalshi called the charges "a crazy overreach" and said it will fight them in court. The case escalates a dispute now involving the CFTC, and federal appeals courts have split on whether states can apply gambling laws to prediction markets. Coverage: 6 outlets in 24h

Utah filed felony charges against Kalshi, CEO Tarek Mansour and COO Luana Lopes Lara, accusing them of illegally promoting gambling in the state.

Kalshi called the charges "a crazy overreach" and said it will fight them in court. The case escalates a dispute now involving the CFTC, and federal appeals courts have split on whether states can apply gambling laws to prediction markets.