News Utah's criminal case against Kalshi pushes four operators out of its prediction markets

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DraftKings, FanDuel, Fanatics and PrizePicks are stopping sports and political event contracts for people in Utah, SBC Americas reported.

The moves follow criminal charges the state filed this week against the prediction market Kalshi. DraftKings and FanDuel have already acted, and Fanatics follows on Nov. 4.

The changes apply to customers physically located in Utah. Each operator has left some products in place.

What changes for Utah users

DraftKings confirmed the change. From Thursday afternoon, DraftKings Predictions no longer offers sports, political, novelty and certain other event contracts in the state.

A FanDuel spokesperson said that "Event contracts on sports, politics and novelties are no longer available to customers in Utah through FanDuel Predicts," in an email to SBC Americas.

FanDuel customers can still trade on economic benchmarks and key financial indicators. Open positions stay open and settle as expected.

Fanatics Markets still listed Utah as available on Friday. A spokesperson said that, because of recent developments, trade placement in the state will stop on Nov. 4.

PrizePicks has switched off Team Picks and Culture Picks in Utah.

Games, leagues, teams and season-long outcomes fall under Team Picks, while Culture Picks cover politics, entertainment and pop culture. Only the daily fantasy sports-style Player Picks remain.

The charges against Kalshi

Utah Attorney General Derek Brown, a Republican, filed the charges on Oct. 28 in a state court in Salt Lake County, Reuters reported.

They name Kalshi and its co-founders, Tarek Mansour and Luana Lopes Lara. The 14 counts include one second-degree felony for a pattern of unlawful activity.

Another 12 are third-degree felonies for online gambling promotion. The last is a misdemeanor for general gambling promotion.

The charging documents cite 12 occasions in September when an undercover agent placed bets on football, baseball and other sports.

They also say Kalshi kept serving Utah residents after a federal judge ruled in August that federal law did not stop the state enforcing its gambling laws.

Brown said that calling the activity a prediction market does not change what it is. Federal registration, he said, does not put a company above state law.

Kalshi pushed back. A spokesperson called the case an overreach and said Utah is playing politics. The company said it expects to stop the prosecution in court, as it did in Arizona.

Arizona is the only other state to bring a criminal case against Kalshi. A federal judge blocked it.

The federal and civil fights

The Commodity Futures Trading Commission sued to stop Utah enforcing its gambling laws against Kalshi.

Its complaint argues the Commodity Exchange Act gives the agency exclusive jurisdiction over these markets.

The filing also describes Utah's separate Oct. 20 civil action, filed in the Third Judicial District Court in Salt Lake County.

That case names Kalshi entities along with Susquehanna International Group and Susquehanna Government Products. It alleges Kalshi has offered bets to Utah residents since at least September 2024.

Kalshi sued Utah officials in February on the same preemption argument.

A federal judge rejected it in August, and the Tenth Circuit Court of Appeals denied an emergency injunction pending appeal in September. Appeals courts have split on the broader question.

The US Supreme Court has been asked to resolve it, Reuters reported.

SBC Americas also detailed campaign donations to Brown from companies with a stake in betting.

DraftKings and PrizePicks each gave $5,000 in 2025, and Stacie Stern, an Underdog senior vice president, gave $10,000 in January 2026.

Worth keeping an eye on how this lands - there's an ongoing discussion of US online casinos on the forum.
 
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