Prediction Market Sites Withdrawing From Utah

Prediction markets are beating a hasty retreat

Utah was the first state to pursue criminal charges in the ongoing battle between states and federal regulators over the legality of prediction markets. However, it should be noted that the stakes are much higher in this state.

Whereas many other states are merely seeking to get the same revenue from prediction market sites that the government is drawing from legal, regulated sports betting operators, that's not the case here. Almost all forms of gambling are against the law in Utah.

The semantics over whether sports-event contracts are betting could cost these sites money in states like Michigan and New Jersey. In Utah, it could realistically cost the operators of these sites prison time.

"Utah law is clear: gambling is illegal in our state," Utah Attorney General Derek Brown said in a statement to FOX 13 News. "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."

Prediction market sites list reasons for their Utah departures

Spokespeople for the departing prediction market sites are claiming that they don't believe they are breaking any laws. Still, it would also appear that they are opting to err on the side of caution.

"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," a Robinhood spokesperson said in a statement to FOX 13 News. "Customers will continue to have access to other categories, including finance and economics."

Also a sports betting site operator, DraftKings has never offered its sportsbook in Utah because sports betting is illegal in the state. They may be convinced that what their DraftKings Predictions platform offers isn't sports betting. Still, they aren't so certain that they deem it worth the risk to continue offering it in the state.

"DraftKings remains committed to operating responsibly and transparently," the company said in a statement. "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."

Kalshi facing criminal charges in Utah

Kalshi co-founders CEO Tarek Mansour and COO Luana Lopes Lara are facing 13 counts of violating the state's prohibition on gambling and another charge involving profiting off illegal activity. The felony charges carry the possibility of jail time.

It's the first time individuals running a prediction market company have been included in such measures.