SALT LAKE CITY — In the aftermath of the Utah Attorney General's Office leveling criminal charges against Kalshi and two of its executives, other predictive markets have abruptly ceased trading in the state.
DraftKings ceased allowing anyone in Utah to place money on its prediction markets, the company confirmed to FOX 13 News. It already prohibits sports betting because Utah law forbids it.
"Effective immediately, sports, novelty, political, and certain other event contracts are no longer available on DraftKings Predictions for customers physically located in Utah. Customers are still able to trade financial event contracts, including those related to stocks, commodities, and cryptocurrency. Any open positions customers hold in the affected markets will remain open and settle as normal. DraftKings remains committed to operating responsibly and transparently," the company said in a statement.
Utah levels criminal charges against Kalshi and some of its executives:
Fanatics said its prediction markets will cease offering contracts to people in Utah effective Nov. 4.
"While we do not believe these contracts violate any state laws, beginning on November 2, 2026, we will restrict customers in Utah from entering new event contract positions on sports, culture, elections, and politics. Customers will continue to have access to other categories, including finance and economics," a Robinhood spokesperson said in a statement to FOX 13 News.
Though none of the companies explicitly said so, it appears to be in response to criminal charges being filed last week against Kalshi. The company, its CEO and COO, found themselves facing felony-level gambling-related charges. They have been ordered to appear before a judge in Salt Lake City's 3rd District Court in December.
"Utah law is clear: gambling is illegal in our state. Some of the largest online gambling apps are now pulling out of Utah. I appreciate these companies being responsive to our efforts. It is the right outcome for Utah families who want gambling's harms kept out of their homes and communities. We will continue to enforce Utah law against any company that brings gambling into Utah," Attorney General Derek Brown said in a statement to FOX 13 News.
News of the companies pulling out was first reported by the website Legal Sports Report.
Kalshi and other apps allow people to place money on "contracts" based on the outcome of real-world events ranging from sports to politics. Utah political leaders have insisted that prediction markets are gambling, which violates the state's constitutional prohibition on gaming. Kalshi and other companies argue that it is not and is governed by a separate set of laws set by the federal government and subject to oversight by the Commodity Futures Trading Commission.
Kalshi sued Utah preemptively, fearing a crackdown, and asked a federal judge to block the state from any kind of enforcement. The judge refused and allowed Utah to proceed. A federal appeals court also refused to block any kind of enforcement action against Kalshi. Dozens of states have filed a "friend of the court" brief siding with Utah in that legal battle. The Trump administration has filed a similar brief siding with Kalshi.
The Trump administration has sided with Kalshi in multiple legal battles against Utah, and the CFTC filed a lawsuit against the state of Utah, alleging that it has authority over prediction markets. The Utah Attorney General's Office has filed a civil lawsuit against Kalshi, in addition to the criminal charges that carry potential prison sentences if the company's executives are convicted.
Utah has also sought an injunction to block Kalshi from operating in the state.