Utah officials have brought felony criminal charges against prediction market Kalshi and its two co-founders for allegedly illegally offering gambling to the state's residents.

Tarek Mansour and Luana Lopes Lara each face one count of pattern of unlawful activity, a second-degree felony; 12 counts of online gambling promotion, a third-degree felony; and one count of general gambling promotion, a Class A misdemeanor. All gambling is illegal in Utah.

Utah also recently filed a civil lawsuit against Kalshi , seeking to prevent it from offering Utah residents betting opportunities on sports, elections, and other events.

A special agent with the Utah State Bureau of Investigations signed up for an account on Kalshi as a fictional Utah resident and says he was allowed to place bets on several football games.

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"Gambling is illegal in Utah, whether you place the bet, run the game, or promote it.…