TLDR Utah is set to sign HB243, a law classifying “proposition betting” as gambling, directly targeting prediction market platforms like Kalshi and Polymarket Governor Spencer Cox plans to sign the bill, citing concerns about young people’s access to digital betting Kalshi has already sued Utah in federal court, arguing the CFTC holds exclusive authority over its products The CFTC under Trump supports Kalshi’s position, setting up a federal vs. state legal clash Bipartisan federal legislation has been introduced to ban bets on war, assassinations, and elections
Utah is moving to block prediction market platforms Kalshi and Polymarket from operating in the state, pushing the country’s growing fight over online betting into new legal territory.
Utah’s bill, HB243, passed both chambers of the state legislature and is headed to Governor Spencer Cox’s desk. Cox has said he will sign it. The law classifies “proposition betting” — wagers on specific in-game events like a player’s stats — as gambling under state law.
Prediction market companies argue their products are financial derivatives, not bets. Kalshi and Polymarket let users buy and sell contracts tied to the outcome of events, priced between one cent and 99 cents based on how likely participants think that outcome is.
Utah has prohibited gambling since joining the Union in 1895. Along with Hawaii, it has the strictest gambling laws in the country. About half of the state’s 3.5 million residents are members of The Church of Jesus Christ of Latter-day Saints, which teaches that gambling is morally harmful.
“We are putting a casino in the pocket of every single American, and they are targeting especially young people,” Cox said.
The Legal Battle Lines
Kalshi sued Utah in federal court in late February, before the bill was even signed, asking a judge to block enforcement. The