Federal judge lets Utah enforce its anti-gambling laws on the prediction
market Kalshi
[August 06, 2026] By
HANNAH SCHOENBAUM
SALT LAKE CITY (AP) — Utah can enforce its strict anti-gambling laws on
prediction markets such as Kalshi and Polymarket, a federal judge ruled
in a win for states seeking to rein in the popular betting platforms.
Utah has been on the front lines of a battle between states and the
federal government over who regulates the markets and whether they
should be considered finance or gambling. The legal landscape is
fragmented, with state and federal courts blocking restrictions in
several states and allowing them in others.
Kalshi sued Utah in February, asking a federal judge to prevent the
state from enforcing its gambling restrictions on the platform. The
lawsuit came as Utah was on the verge of enacting legislation intended
to undercut prediction markets from doing business in the state.
State law now bans proposition betting in sports — wagers on certain
events happening in a game, rather than the game’s outcome — which is a
significant source of revenue for the leading prediction markets.
U.S. District Judge Robert Shelby rejected Kalshi’s request to block the
Utah restrictions Tuesday, saying the federal law that Kalshi cited in
its argument does not prevent the state from enforcing its laws.
For now, Utah residents can still place bets on the platforms. The
state’s attorney general, Derek Brown, said he will enforce state laws
on Kalshi, but he was still exploring options.
“Gambling is gambling, no matter what any company calls it,” Brown said.
Kalshi said in a statement that it disagrees with the ruling and plans
to appeal.
The company maintains that prediction markets fall exclusively under
federal jurisdiction and are not governed by a patchwork of state
gambling laws. The Commodity Futures Trading Commission, the federal
agency responsible for regulating financial markets, agrees and has
defended prediction markets in court.
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An ad for the prediction market app Kalshi is displayed on a mobile
phone Thursday, April 16, 2026, in Chicago. (AP Photo/Erin
Hooley,File)
 Courts in Maryland, Nevada, Ohio,
New York and Wisconsin have ruled against Kalshi in similar
lawsuits, while judges in New Jersey, Tennessee, Arizona and
Minnesota have sided with the company. Other states have been
allowed to restrict certain aspects of Kalshi's operations without
banning them entirely.
The Trump Administration has been supportive of prediction markets,
which allow anyone with a smartphone to wager on just about
anything. The president's eldest son is an adviser for both Kalshi
and Polymarket, and an investor in the latter through his venture
capital firm. Trump’s social media platform, Truth Social, is also
launching its own cryptocurrency-based prediction market called
Truth Predict.
Utah leaders such as Gov. Spencer Cox have treated their fight to
keep out anything they deem gambling as a moral crusade. The culture
is rooted in the locally headquartered Church of Jesus Christ of
Latter-day Saints, known widely as the Mormon church, which views
gambling as a vice that leads to selfishness and addiction.
Prediction markets are “causing tremendous harm to countless
American families,” Cox said in celebrating the ruling.
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