In response to felony charges filed against Kalshi by Utah this week, major gaming operators are withdrawing their prediction markets from the state. Among those pulling back are DraftKings, Fanatics, FanDuel, and PrizePicks, all of which have confirmed adjustments in their Utah operations following the state's legal actions.
Utah Attorney General Derek Brown is pursuing 14 counts of criminal activity against Kalshi, accusing the company of blatantly violating the state's constitution, which prohibits any form of gambling or games of chance. "For other companies that are operating here in Utah, I would ask two things: read this complaint, and we’re simply asking you to follow the law, follow Utah law. Gambling has been illegal in Utah since statehood," Brown stated in a recent press conference.
In the wake of this crackdown, operators that began offering prediction markets in Utah over the past year are reacting quickly.
DraftKings has halted its predictions services, effective Thursday afternoon, barring sports, political, novelty, and other event contracts for customers in the state. Customers can still trade financial event contracts related to stocks and cryptocurrency, and existing positions will remain open.
A representative from FanDuel confirmed that following a similar decision made on Friday morning, event contracts concerning sports and politics are no longer available through their platform in Utah. Financial indicators can still be traded, and existing positions will settle as expected.
Fanatics is also ceasing its prediction market trades in Utah, with plans in place to stop on November 4, citing the recent developments surrounding Kalshi. Meanwhile, PrizePicks has restricted its offerings and will only provide daily fantasy sports selections in Utah, having removed its Team Picks and Culture Picks, which involved predictions on sports and cultural events.
The push against prediction markets in Utah intensified notably in the last two weeks. The situation escalated following Kalshi's lawsuit against Utah state officials in February, claiming that its operations should be protected under the Commodity Exchange Act. However, a federal judge ruled against Kalshi in August, and in September, the Tenth Circuit Court of Appeals denied an injunction motion related to the appeal.
Since then, the conflict unfolded rapidly:
– On October 20, Brown filed suit against Kalshi and its affiliates in state court.
– The Commodity Futures Trading Commission (CFTC) and the U.S. Department of Justice intervened with their own suit against Utah on Monday.
– On the same day, Crypto.com also initiated legal action against the state.
– Utah responded on Wednesday, filing 13 felony charges and a misdemeanor count against Kalshi and its co-founders, marking a significant escalation against prediction market operations.
Notably, while pursuing these allegations, Brown has received campaign contributions from gambling companies, including $5,000 from DraftKings and PrizePicks in 2025 and $10,000 from Underdog’s Stacie Stern in early 2026, stirring some concerns about the potential conflicts of interest amid the ongoing legal battle.
