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A federal judge ruled that Utah may enforce its anti-gambling laws against prediction markets including Kalshi and Polymarket, rejecting Kalshi’s request to block the state’s restrictions.
U.S. District Judge Robert Shelby denied Kalshi’s bid to stop Utah from applying its gambling laws, according to a report published Aug. 6. Kalshi sued Utah in February, arguing that prediction markets fall under exclusive federal oversight rather than state gambling law.
Judge rejects Kalshi’s request in Utah case
Shelby said the federal law cited by Kalshi does not prevent Utah from enforcing its own laws. Utah law bans proposition betting in sports, and the state had been preparing legislation aimed at limiting prediction markets’ ability to operate there.
Utah Attorney General Derek Brown said the state will enforce its laws on Kalshi and is still exploring options. Brown said, “Gambling is gambling, no matter what any company calls it.”
Kalshi said it disagrees with the ruling and plans to appeal. The report said Utah residents can still use the platforms for now.
Ruling adds to split across multiple states
The Utah decision is part of a broader legal fight over whether prediction markets should be treated as gambling products or as federally regulated financial products.
According to the report, courts in Maryland, Nevada, Ohio, New York, and Wisconsin have ruled against Kalshi in similar lawsuits. Judges in New Jersey, Tennessee, Arizona, and Minnesota have sided with the company.
The Commodity Futures Trading Commission has defended prediction markets in court. The article also noted that other states have been allowed to restrict certain parts of Kalshi’s operations without banning them entirely.
For now, the next step in the Utah case is Kalshi’s expected appeal.
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Source: As reported by wvnews.com.
