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A federal judge has ruled that Utah can enforce its anti-gambling laws against prediction markets including Kalshi and Polymarket, rejecting Kalshi’s attempt to block the state from applying its restrictions.
U.S. District Judge Robert Shelby denied Kalshi’s request after the company sued Utah in February. According to the source report, Kalshi argued that prediction markets fall under exclusive federal jurisdiction and are not subject to state gambling laws. The judge found that the federal law Kalshi cited does not stop Utah from enforcing its own rules.
Utah ruling adds to the state-by-state split
The decision adds to a growing patchwork of court rulings over whether prediction markets should be treated more like federally regulated financial products or like gambling that states can police.
According to the source 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.
Utah law bans proposition betting in sports, and the state was also preparing legislation aimed at undercutting prediction-market operators doing business there.
Utah Attorney General Derek Brown said the state will enforce its laws on Kalshi while still exploring its options. In response to the ruling, Brown said, “Gambling is gambling, no matter what any company calls it.”
Kalshi plans to appeal
Kalshi said it disagrees with the ruling and intends to appeal.
The broader dispute matters because the Commodity Futures Trading Commission has defended prediction markets in court, while multiple states continue testing whether they can restrict or block those platforms under their own gambling laws.
For readers tracking prediction-market regulation, the next key development is Kalshi’s appeal and whether more courts continue to split on the same core question: whether these markets are governed primarily by federal financial rules or by state gambling laws.
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Source: As reported by HANNAH SCHOENBAUM.
