The Commodity Futures Trading Commission (CFTC) has sued Utah to defend its claimed exclusive authority over federally registered prediction markets , as the state files (PDF) 14 criminal charges against Kalshi and its co-founders for allegedly violating anti-gambling laws. The Verge reports: On Wednesday, Utah's Attorney General Derek Brown filed charges against Kalshi co-founders Tarek Mansour and Luana Lopes Lara, including 12 counts of online gambling promotion, a third-degree felony, one count of a pattern of unlawful activity, a second-degree felony, and general gambling promotion, a Class A misdemeanor. The civil lawsuit calls Kalshi a "back-alley gambling den," and Attorney General Brown didn't mince words in a statement to Gizmodo.

"Gambling is illegal in Utah, whether you place the bet, run the game, or promote it. Calling it a 'prediction market' doesn't change what it is, and being federally registered doesn't put a company above the law," said Brown.…