‘You can bet on it’: Utah lawmakers form united front in push to ban prediction markets
Utah’s Republican leaders are launching a legal and legislative campaign to ban prediction markets, arguing they are gambling. The move pits the state’s anti‑gambling tradition against federal regulators and industry players backed by the Trump family.
Utah’s lawmakers have united to block the operation of prediction markets in the state, arguing that the platforms are a form of gambling that should fall under state control. The effort follows a national debate over whether these sites, which allow users to trade on outcomes ranging from elections to sports, should be regulated as financial exchanges or as gambling.
State’s Anti‑Gambling Legacy
Utah has long maintained some of the toughest anti‑gambling laws in the country, a stance rooted in the state’s strong Mormon heritage. The Church of Jesus Christ of Latter‑Day Saints, which represents more than half of Utah’s population, views gambling as a moral and social vice. This cultural backdrop has shaped the state’s political landscape, with governors and legislators consistently opposing any form of gambling, from casinos to sports betting.
Federal vs. State Authority
Prediction market operators such as Kalshi and Polymarket classify their services as derivative trading, placing them under the Commodity Futures Trading Commission (CFTC) rather than state gaming authorities. Under the Trump administration, the CFTC has defended this classification, rolling back restrictions that were imposed during the Biden era. The platforms argue that their markets are “like any other derivative market” and that state bans would conflict with federal law.
Utah’s Governor Spencer Cox has been vocal in his opposition, labeling the markets as “pure gambling” and stating they have no place in the state. Attorney General Derek Brown echoed this view, calling the trading a “wolf in sheep’s clothing.” Both officials have threatened to use all available legal resources to challenge federal support for the industry.
Legislative Push and Constitutional Amendments
In March, the Utah legislature amended the state constitution to broaden the definition of gambling to include “proposition bets,” a category that would encompass prediction markets. The measure was signed into law by Governor Cox and passed unanimously in the state senate. Republican Senator Brady Brammer, who sponsored the amendment, said the platforms exhibit every characteristic of gambling and that Utah will fight “to the bitter end” if necessary.
Democratic Senator Stephanie Pitcher, who also supported the bill, highlighted concerns about insider trading and market manipulation on these platforms. The amendment reflects a broader state strategy to assert control over gambling-related activities, a stance that contrasts with the federal stance supported by the Trump family’s involvement in the industry.
Federal Litigation and Industry Response
Kalshi has taken the fight to court, suing Governor Cox and Attorney General Brown in February over alleged unlawful attempts to block the company’s operations in Utah. The lawsuit argues that such a ban would violate federal regulations governing financial derivatives. The litigation is ongoing, with Kalshi asserting that the CFTC, not state governments, has jurisdiction over event contracts.
The company has seen mixed results in other states: a federal judge in Arizona blocked criminal charges, while Nevada and Tennessee have imposed restrictions. Legal scholars note that outcomes vary depending on whether courts view the platforms as financial exchanges or gambling.
National Legislative Efforts
Utah representatives have also moved the debate to Congress. Rep. Blake Moore introduced the Event Contract Enforcement Act, which would prohibit trading contracts tied to wars, illegal activity, elections, and sports. Senator John Curtis, alongside Democrat Adam Schiff, proposed a bill to ban CFTC‑registered entities from offering contracts resembling sports bets or casino games. These efforts aim to give states more authority to regulate or prohibit prediction markets.
Kalshi has expressed support for legislation that would bar federal officials from using insider information on prediction contracts, aligning with the company’s own enforcement policies. Despite this, Utah Republicans remain steadfast, arguing that sports prediction markets are unequivocally gambling and should be governed by state law.
As the legal and legislative battle continues, Utah’s stance highlights a clash between state moral authority and federal regulatory frameworks, raising questions about the future of prediction markets across the United States.
What Happens Next?
The state’s constitutional amendment and ongoing litigation set the stage for potential Supreme Court review. Meanwhile, federal lawmakers are drafting bills that could redefine the regulatory landscape for prediction markets nationwide. Utah’s determination to enforce its anti‑gambling laws may influence other states with similar cultural and religious values.
Why it matters
Utah’s push to ban prediction markets underscores a broader national debate over gambling versus financial regulation, with implications for state sovereignty and federal oversight.
Key points
- Utah’s anti‑gambling laws are rooted in its Mormon heritage
- Prediction markets argue they are financial exchanges, not gambling
- The state amended its constitution to include prediction markets in its gambling ban
- Kalshi sued Utah officials, claiming federal jurisdiction
- Federal legislators are drafting bills to restrict prediction markets nationwide
Frequently asked questions
What are prediction markets?
Platforms where users trade contracts on the outcome of events, such as elections or sports, treating them like financial derivatives.
Why does Utah oppose them?
The state views them as gambling, which conflicts with its strong anti‑gambling tradition and religious values.
Can the state legally ban them?
Utah is amending its constitution to broaden its definition of gambling, giving it a stronger legal basis to challenge the platforms.
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