Utah Battles Prediction Market Firms in Legal Fight Over Gambling

State seeks to limit Kalshi and Polymarket from operating in Utah, citing moral and economic concerns

Published on Mar. 12, 2026

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For over a century, Utah has kept gambling largely out of the state due to the conservative ideals of the Mormon church. Now, the state is fighting a new battle to prevent prediction market platforms like Kalshi and Polymarket from allowing wagers on events within the state, arguing these platforms are essentially online casinos that target young people. Utah's governor plans to sign legislation expanding the state's gambling ban to include proposition bets, putting the state at odds with the federal government which has asserted it has regulatory oversight of these markets.

Why it matters

This conflict puts Utah, a state heavily influenced by the Mormon church, on the frontlines of a cultural, political and economic battle over the rise of prediction markets. The outcome could shape how other states handle the issue in the future, as they grapple with whether these new markets should be regulated as gambling or finance.

The details

The legislation Utah plans to enact would expand the state's gambling ban to include wagers on certain events happening in a game, rather than just the game's outcome. This would target the 'prop bets' that make up a significant portion of Kalshi and Polymarket's trading volume. The bill also aims to stop sportsbook companies from setting up their own prediction markets. Kalshi has already sued Utah, arguing its platform is different from traditional sportsbooks because customers bet against each other, not the 'house'. However, Utah officials view these platforms as 'putting a casino in the pocket of every single American' and targeting young people.

  • Utah has prohibited gambling since it was admitted to the Union in 1895.
  • Utah Governor Spencer Cox plans to sign the new legislation expanding the state's gambling ban.
  • In late February 2026, Kalshi preemptively sued Utah, asking a judge to stop the state from enforcing its gambling restrictions on the platform.

The players

Spencer Cox

The Republican governor of Utah who views the rise of prediction markets as a moral crusade and plans to sign legislation to limit their operation in the state.

Kalshi

A prediction market platform that has sued Utah, arguing its product is different from traditional sportsbooks because customers bet against each other, not the 'house'.

Polymarket

A prediction market platform that, along with Kalshi, is estimated to be worth $20 billion each after their last fundraising rounds.

Commodity Futures Trading Commission

The federal agency responsible for regulating financial markets, which has asserted it has exclusive regulatory oversight of prediction markets and argues states cannot ban these products from operating in their jurisdiction.

Blake Moore

A Republican U.S. Representative from Utah who has introduced bipartisan legislation to more aggressively regulate prediction markets.

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What they’re saying

“We are putting a casino in the pocket of every single American, and they are targeting especially young people. It is really awful what they are doing, and we are going to make sure this doesn't happen in our state.”

— Spencer Cox, Governor of Utah (ksgf.com)

“To those who seek to challenge our authority in this space, let me be clear, we will see you in court.”

— Michael Selig, Chairman, Commodity Futures Trading Commission (ksgf.com)

“The idea that it goes against a sense of work ethic, a kind of fair exchange, has always been at the heart of the way a lot of people think about themselves in terms of Utah identity, and certainly Latter-day Saint identity and ethics.”

— Patrick Mason, Chair of Mormon History and Culture, Utah State University (ksgf.com)

What’s next

A federal judge has yet to rule on Kalshi's request to stop Utah from enforcing its gambling restrictions on the platform. The outcome of this legal battle could set a precedent for how other states handle the rise of prediction markets.

The takeaway

This conflict highlights the growing tension between states' rights to regulate gambling and the federal government's assertion of regulatory oversight over emerging financial technologies like prediction markets. The resolution of this fight could have far-reaching implications for the future of the prediction market industry and how it is governed across the United States.