Utah's Anti-gambling Laws Upheld in Kalshi Prediction Market Case
WHO:
ABC News - U.S. District Judge Robert Shelby ruled on the case.
ABC News - Utah Attorney General Derek Brown stated intentions to enforce state laws.
ABC News - Kalshi, a prediction market platform, is involved in the lawsuit.
ABC News - Trump’s eldest son is an adviser for both Kalshi and Polymarket.
WHAT:
Fast Company - A group of lawmakers, led by Oregon Sen. Jeff Merkley, is calling on the Commodity Futures Trading Commission to implement "common-sense guardrails" to stop wildfire-related betting, citing ethical and public policy concerns.
Fast Company - During the Eaton and Palisades fires, over a million dollars circulated on prediction markets as gamblers placed bets on specific wildfire behaviors.
Fast Company - A U.S. soldier, Gannon Ken Van Dyke, was arrested for winning $400,000 on Polymarket by leveraging classified government intel related to a clandestine mission.
ABC News - The ruling allows Utah to enforce a ban on proposition betting in sports, which is a significant source of revenue for leading prediction markets.
ABC News - Kalshi maintains that prediction markets fall exclusively under federal jurisdiction and are not governed by state gambling laws.
ABC News - The Trump Administration has been supportive of prediction markets, which allow anyone with a smartphone to wager on various topics.
ABC News - Trump’s social media platform, Truth Social, is launching its own cryptocurrency-based prediction market called Truth Predict.
ABC News - A federal judge ruled that Utah can enforce its anti-gambling laws on prediction markets like Kalshi and Polymarket.
ABC News - Kalshi plans to appeal the ruling.
ABC News - The ruling allows Utah to enforce a ban on proposition betting in sports.
WHERE:
ABC News - The ruling took place in Salt Lake City, Utah.
WHEN:
ABC News - Kalshi sued Utah in February.
WHY:
Fast Company - Lawmakers expressed concerns that prediction markets could incentivize individuals to commit arson to ensure their bets are successful, raising public safety and insider trading issues.
ABC News - Utah leaders, including Gov. Spencer Cox, view their fight against gambling as a moral crusade, influenced by the Church of Jesus Christ of Latter-day Saints, which sees gambling as a vice.
ABC News - Gov. Spencer Cox stated that prediction markets are “causing tremendous harm to countless American families.”
ABC News - Utah leaders, including Gov. Spencer Cox, view the enforcement of anti-gambling laws as a moral crusade influenced by the Church of Jesus Christ of Latter-day Saints.
ABC News - Derek Brown stated, “Gambling is gambling, no matter what any company calls it.”
HOW:
Fast Company - In March, lawmakers from California and Utah proposed legislation to outlaw betting on "terrorism, assassination, war, gaming, or illegal activity" in response to the risks posed by prediction markets.
ABC News - The federal law cited by Kalshi does not prevent Utah from enforcing its gambling laws, according to Judge Shelby's ruling.
ABC News - The Commodity Futures Trading Commission has defended prediction markets in court, asserting they fall under federal jurisdiction.
(UPDATED August 7, 2026 00:49 UTC)
A group of lawmakers, led by Oregon Senator Jeff Merkley, is urging the Commodity Futures Trading Commission to establish "common-sense guardrails" against wildfire-related betting, citing serious ethical and public policy concerns. This comes after over a million dollars changed hands on prediction markets during the Eaton and Palisades fires, where gamblers placed bets on specific wildfire behaviors, raising fears that such activities could encourage arson. Additionally, a U.S. soldier named Gannon Ken Van Dyke was arrested for winning $400,000 on Polymarket by using classified government intel related to a secret mission, highlighting the potential dangers of insider trading in these markets.
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(UPDATED August 6, 2026 13:33 UTC)
A recent ruling allows Utah to enforce a ban on proposition betting in sports, which is a major revenue source for leading prediction markets. Kalshi argues that these markets should be under federal jurisdiction rather than state gambling laws, while Trump’s administration has shown support for them, enabling anyone with a smartphone to place bets on various topics. Additionally, Trump’s social media platform, Truth Social, is set to launch its own cryptocurrency-based prediction market called Truth Predict, as Utah leaders, influenced by the Church of Jesus Christ of Latter-day Saints, continue to fight against gambling, viewing it as a moral issue.
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(UPDATED August 6, 2026 08:18 UTC)
A federal judge in Salt Lake City has ruled that Utah can enforce its anti-gambling laws on prediction markets like Kalshi and Polymarket, allowing the state to ban proposition betting in sports. Kalshi plans to appeal this ruling, which comes after the company sued Utah in February. Utah Attorney General Derek Brown emphasized that "gambling is gambling," reflecting the state's moral stance influenced by local leaders, including Governor Spencer Cox.