Utah to Ban Prediction Markets, State vs. Federal Regulatory Dispute Escalates

Odaily News Utah's HB243 bill has been submitted to the governor's office. The bill defines "proposition betting" as gambling, aiming to prevent prediction market platforms such as Kalshi and Polymarket from operating in the state. Governor Spencer Cox has indicated plans to sign the bill.

Kalshi has previously filed a lawsuit against Utah, requesting a federal judge to prevent the state from enforcing gambling restrictions against it. Kalshi argues that its event contracts are federally regulated derivatives, not gambling, and that the CFTC has exclusive jurisdiction over such markets under the Commodity Exchange Act. Kalshi also filed a lawsuit against Iowa on the same day. Previously, a federal judge in Ohio dismissed Kalshi's request to block the state's regulators from enforcing gambling laws.

CFTC Chairman Michael Selig stated that the agency has regulatory authority over prediction markets and warned that it would defend this jurisdiction in court. Selig also described well-functioning prediction markets as "truth machines," believing that when participants back their views with capital, these markets can generate more reliable signals than traditional polls.