Utah sues Kalshi and Susquehanna to halt alleged illegal betting

Utah has filed a lawsuit against prediction market platform Kalshi and market maker Susquehanna, seeking to halt what the state alleges is illegal betting activity. The suit challenges how prediction markets are classified, which could set a precedent affecting the entire sector. A ruling against Kalshi could deter liquidity providers and slow growth in crypto-adjacent prediction markets, making this a regulatory risk worth monitoring for traders exposed to the space.