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- calendar_today November 2, 2026
Utah Criminal Charges Spur Predictive Market Exits
Predictive markets have ceased operations in Utah following the Utah Attorney General’s Office filing criminal charges against Kalshi and two of its executives. Kalshi, a company allowing users to place bets on the outcomes of real-world events, faces felony-level gambling-related charges after Utah authorities determined such markets violate the state’s prohibition on gambling.
DraftKings Restricts Access to Prediction Markets in Utah
DraftKings confirmed it has blocked users in Utah from placing money on its prediction markets. Although sports betting was already banned in Utah, the company’s new measures also prohibit placing bets on novelty, political, and other event contracts. In a statement provided to FOX 13 News, DraftKings clarified that, "Customers are still able to trade financial event contracts, including those related to stocks, commodities, and cryptocurrency. Any open positions customers hold in the affected markets will remain open and settle as normal." The company emphasized its commitment to operating responsibly and transparently.
Fanatics and Robinhood Announce Utah Restrictions
Fanatics also confirmed its prediction markets would stop offering event-based contracts to Utah users, effective November 4. Robinhood, meanwhile, announced that starting November 2, 2026, it will restrict Utah customers from opening new event contract positions covering sports, culture, elections, and politics. According to a Robinhood spokesperson, "Customers will continue to have access to other categories, including finance and economics." Neither Fanatics nor Robinhood explicitly cited the recent charges, but the timing suggests a response to the legal action against Kalshi.
Utah Law and the Attorney General's Stance
Utah Attorney General Derek Brown highlighted the state’s position in a statement, saying, "Utah law is clear: gambling is illegal in our state. Some of the largest online gambling apps are now pulling out of Utah. I appreciate these companies being responsive to our efforts. It is the right outcome for Utah families who want gambling’s harms kept out of their homes and communities." Brown stated that the Attorney General’s Office would continue to enforce the law against companies offering gambling in Utah.
Broader Legal Dispute Over Prediction Markets
In the ongoing legal battle, Kalshi contends that its markets are not gambling and fall under federal regulation via the Commodity Futures Trading Commission (CFTC). The company filed a preemptive lawsuit seeking to block Utah’s enforcement, but a federal judge, and later a federal appeals court, ruled against Kalshi. Utah has sought an injunction barring Kalshi from operating in the state, and dozens of states have filed a “friend of the court” brief siding with Utah. In contrast, the Trump administration and the CFTC have each filed briefs supporting Kalshi.
Civil and Criminal Proceedings Continue
The Utah Attorney General’s Office has also filed a civil lawsuit against Kalshi, alleging that Utah residents lost millions in illegal gambling. The criminal charges carry the potential for prison sentences for the company’s executives if convicted. Kalshi executives have been ordered to appear before Salt Lake City’s 3rd District Court in December as proceedings continue.
Future of Prediction Markets in Utah
The case involving Kalshi and Utah could have significant implications for the regulation of predictive markets and online gambling. The ongoing legal processes and company withdrawals mark a pivotal moment for event-based trading platforms operating in states with strict gambling laws.
Source: fox13now.com.
