Case 2:26-cv-00151 Document 1 Filed 02/23/26 PageID.22 Page 22 of 27
64. On February 17, 2026, the Governor responded to CFTC Chairman Selig’s
announcement on X (formerly Twitter) that the CFTC intends to defend its “exclusive jurisdiction over [] derivative markets” stating that he will use “every resource within [his] disposal as governor of the sovereign state of Utah” to challenge the CFTC’s position. Ex. 1. 65. Then, on February 19, 2026, the Governor shared a news article on X titled “Gov. Cox vows fight to keep prediction markets out of Utah.” He also wrote that “Rebranding betting as a financial product doesn’t reduce the harm it causes” and “We’re ready to defend our laws in court.” Ex. 2. 66. The Governor was also quoted in a February 20, 2026 news article in which he said “I think you’re going to see 50 states suing these guys in one way or another. It’s illegal in Utah and will continue to be so.” 18 The Utah Governor also criticized CFTC Chairman Selig, and he suggested that enforcement against entities like Kalshi was imminent. See Ex. 1. 67. And then, following the Governor’s threats, Defendant Brown made clear his intent to bring an action against Kalshi. 19 68. Violations of Utah’s anti-gambling laws constitute felonies and misdemeanors. E.g. , Utah Code §§ 76-9-1404 (“Online gambling promotion” is a third degree felony); id. § 76-9- 1405 (“General gambling promotion” is a class A misdemeanor or a third degree felony, depending on criminal history). Significantly, Utah law exempts “lawful business transaction[s]”—such as transactions executed on a federally registered DCM—from its definition of gambling.
18 Raga Justin, Connecticut Gov. Lamont Pushes for Limits on Prediction Markets , Bloomberg Law (Feb. 20, 2026, 3:10 PM EST), https://news.bloombergtax.com/daily-tax-report-state/connecticut-gov-lamont- pushes-for-limits-on-prediction-markets. 19 Derek Brown, Opinion: Utah’s attorney general takes a stand against gambling and prediction markets , Desert News (Feb. 22, 2026), https://www.deseret.com/opinion/2026/02/22/utah-gambling-apps- prediciton-markets-harmful-dangerous
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