Major prediction markets are pulling out of Utah following a wave of state criminal charges targeting online wagering platforms.
The state filed 14 criminal charges against prediction market operator Kalshi and its co-founders, Tarek Mansour and Luana Lopes Lara, on Oct. 28, triggering a rapid retreat among competitors operating within state lines.
The enforcement action directly challenges digital betting platforms that continued to offer event contracts despite a total prohibition on gambling under state law. Utah Attorney General Derek Brown welcomed the swift compliance from major brands, stating that state regulators intend to maintain pressure on unauthorized gaming operators.
“Utah law is clear: gambling is illegal in our state,” Utah Attorney General Derek Brown said in a statement. “Some of the largest online gambling apps are now pulling out of Utah. I appreciate these companies being responsive to our efforts.”
DraftKings acted immediately following the late-October legal filings against Kalshi, issuing an email notice to consumers on Oct. 28 to announce it was halting affected operations in Utah. FanDuel Predicts implemented a similar shutdown on Oct. 30, while Fanatics suspended all trading on its Fanatics Markets platform in the state on Wednesday.
The swift corporate retreat unfolded just weeks after local reporting highlighted that prediction markets continued to serve local users despite the state’s strict prohibition on wagering. Under the updated platform restrictions, customers in Utah can no longer access sports, novelty, or political event contracts.
However, platforms have drawn distinctions regarding financial instruments. DraftKings informed consumers that users physically located in Utah can still trade financial event contracts linked to stocks, commodities, and cryptocurrency. FanDuel similarly confirmed that its customers retain access to trade economic benchmarks and key financial indicators.
State authorities have left open the possibility of targeting individual participants who continue to utilize illegal wagering apps. While major operators have restricted high-risk betting verticals, the Attorney General’s office emphasized that consumer enforcement remains an active option.
“Gambling is illegal in Utah, and our office enforces that law. If you’re promoting, organizing, and profiting from gambling operations or gambling in Utah, we urge you to stop now. We reserve the right to enforce the law against anyone who violates it,” the Attorney General’s office stated.
Open positions currently held by Utah users on DraftKings and FanDuel will remain active and settle under normal operating parameters, with users permitted to sell existing positions ahead of settlement dates. Representatives for DraftKings did not respond to multiple requests for comment regarding the state’s ongoing enforcement strategy.
State prosecutors are pressing forward with the 14 criminal charges filed against Kalshi and its leadership team. Meanwhile, regulatory watchdogs plan to monitor compliance among remaining financial trading platforms to ensure digital operators do not skirt state prohibitions under the guise of alternative asset trading.
