Utah lawmakers form united front in push to ban prediction markets

2 days ago

Utah has strict anti-gambling laws rooted in historical opposition, with its Republican leaders confronting the rise of prediction markets that allow betting on events like elections and sports.
Prediction markets like Kalshi and Polymarket classify their platforms as financial exchanges under federal commodities law, not as gambling, operating nearly nationwide with federal regulatory backing under the Trump administration.
Utah officials, including Governor Spencer Cox and Attorney General Derek Brown, argue that prediction markets are gambling in disguise and are taking legal action to block them, with the state amending its constitution to explicitly include 'proposition bets' in its gambling ban.
The battle involves legal conflicts, with Kalshi suing Utah officials and facing mixed court rulings in states like Arizona, Nevada, and Tennessee, raising questions about federal versus state jurisdiction that could escalate to the Supreme Court.
Utah's stance is influenced by the Church of Jesus Christ of Latter-day Saints, which views gambling as morally harmful, with strong political backing from Latter-day Saint leaders in the state, and lawmakers are pushing federal legislation to restrict prediction markets and protect state authority.

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