TLDR Kalshi, a New York-based prediction market, has sued the state of Utah to block enforcement of proposed anti-gambling laws against its platform. Utah Governor Spencer Cox and Attorney General Derek Brown have publicly stated they intend to stop Kalshi from operating in the state. Kalshi argues its contracts are regulated by the federal Commodity Futures Trading Commission (CFTC), which has said it holds exclusive jurisdiction over prediction markets. Utah’s HB243 bill, which would classify proposition betting as gambling, has passed the House and a Senate committee and is awaiting a full Senate vote. Kalshi says its services fall under a “lawful business” carveout in Utah’s anti-gambling laws.
Prediction market platform Kalshi has filed a lawsuit against the state of Utah, asking a federal court to stop the state from enforcing laws that would shut down its operations there.
NEW: Kalshi has filed a motion for preliminary injunction and TRO against the Governor of Utah (@GovCox) and Utah Attorney General (@AGDerekBrown), seeking to immediately bar them from enforcing Utah’s strict anti-gambling laws vs. Kalshi while the newly-filed lawsuit is pending. pic.twitter.com/WRF4DvSBGB
— Daniel Wallach (@WALLACHLEGAL) February 25, 2026
Kalshi is based in New York and lets users place contracts on the outcome of future events. If a user’s prediction is correct, they receive a payout. The platform operates under federal oversight from the Commodity Futures Trading Commission (CFTC).
The lawsuit was filed in U.S. District Court. Kalshi says Utah officials are preparing to take enforcement action against the company under the state’s existing anti-gambling laws.
Utah Governor Spencer Cox posted on X that prediction markets are “gambling — pure and simple.” He said they are “destroying the lives of families and countless Americans, especially young men.”
Cox also said Utah is “ready to defend