Case 2:26-cv-00151 Document 1 Filed 02/23/26 PageID.10 Page 10 of 27
PARTIES
25. Plaintiff Kalshi is a financial services company with its principal place of business
in New York. Kalshi operates a derivatives exchange and prediction market where users can buy and sell financial products known as event contracts. Its exchange market is federally regulated by the CFTC pursuant to the CEA, 7 U.S.C. §§ 1 et seq. 26. Defendant Spencer J. Cox is sued in his official capacity as Governor of Utah. 27. Defendant Derek Brown is sued in his official capacity as the Attorney General of Utah. 28. Defendant Daniel Burton is sued in his official capacity as Chief Deputy Attorney General and General Counsel of Utah. 29. Defendant Stewart Young is sued in his official capacity as Criminal Deputy Attorney General of Utah. 30. Defendant Douglas Crapo is sued in his official capacity as Public Protection Attorney General of Utah. 31. Together, defendants Spencer J. Cox, Derek Brown, Stewart Young, and Douglas Crapo would be responsible for enforcing any demand for Kalshi to comply with Utah state law that is preempted by federal law.
FACTUAL ALLEGATIONS
A. An Event Contract—Like Other Derivatives—Is a Recognized Financial Tool to Mitigate Risk. 32. Derivatives contracts are financial tools used to mitigate risk. Event contracts are a quintessential example of a derivatives contract—they are a type of option. This form of derivatives contract identifies a future event with several possible outcomes, a payment schedule for the outcomes, and an expiration date. Most commonly, event contracts involve a binary
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