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The U.S. State of Utah has filed 14 criminal charges against prediction market Kalshi and its co-founders.

Utah's Attorney General accuses the Kalshi founders of promoting illegal online gambling after an undercover investigator placed 12 sports wagers on the prediction market platform.

An undercover investigator placed 12 sports wagers totaling $114.87 U.S. on Kalshi and lost $25.10 U.S., according to the legal filing.

Prosecutors in Utah have hit Kalshi with 13 felony counts and one misdemeanor involving alleged gambling promotion.

Utah's Attorney General Derek Brown claims that Kalshi continued accepting sports wagers from residents in the state after a federal court ruled that Utah could enforce its gambling laws against Kalshi.

Kalshi rejected the Utah criminal charges, calling them a "crazy overreach" in a statement posted online.

Utah is also seeking up to $61.2 million U.S. in allegedly unlawful fees through a separate civil lawsuit it has filed against Kalshi.

This is the latest legal problem for Kalshi, which faces multiple lawsuits from U.S. states that accuse it of running illegal gambling operations in their jurisdiction.

The federal government in Washington, D.C. is pushing back and suing the states, arguing that federal law governs prediction markets, not state laws.

Prediction markets let people bet on the outcomes of real-world events such as sports contests and elections.

Kalshi argues that prediction markets are different than other forms of gambling, all of which are regulated by individual U.S. states.

The U.S. Supreme Court is expected to rule in 2027 on who should govern prediction markets, states or the federal government in America.

Kalshi CEO Tarek Mansour has threatened to move Kalshi offshore and out of the U.S. if states are allowed to regulate its operations.

As a private company, Kalshi's stock does not trade on a public exchange.