Utah moves to ban prop bets on Kalshi, Polymarket

Utah will bar Kalshi, Polymarket and other prediction-market platforms from offering sports-related proposition bets after the state legislature passed HB243 (Gambling Revisions). The bill narrows proposition betting to wagers on specific in-game events — for example an individual athlete’s performance or whether a team reaches a particular statistic — rather than bets on final game outcomes. The House approved the bill on Feb. 10 and the Senate on Feb. 27 before sending it to the governor.

Governor Spencer Cox intends to sign HB243 and described the platforms as “putting a casino in the pocket of every single American,” adding they are targeting young people.

Kalshi filed a federal lawsuit in February seeking to block enforcement of the law, arguing its event contracts are derivatives regulated under the Commodity Exchange Act and that the Commodity Futures Trading Commission has exclusive jurisdiction over those markets. On Wednesday the company filed a related suit against Iowa, citing a risk of enforcement there. A federal judge in Ohio recently denied Kalshi’s request for an injunction to prevent state regulators from applying gambling laws to its sports event contracts.

The Commodity Futures Trading Commission has asserted authority over prediction markets. CFTC Chairman Michael Selig warned challengers: “To those who seek to challenge our authority in this space, let me be clear, we will see you in court.” He also described well-functioning prediction markets as “truth machines,” saying markets backed by money can produce transparent signals about future events.

The legal conflict centers on whether states may prohibit access to prediction-style event contracts for residents while the CFTC treats certain contracts as federally regulated derivatives. Courts will be asked to interpret the Commodity Exchange Act and decide whether states can restrict or ban these markets for their residents.

As we reported earlier, Kalshi sued Iowa Attorney General Brenna Bird and the Iowa Racing and Gaming Commission, saying a May meeting intended to discuss a tax bill instead involved state lawyers who questioned whether Kalshi’s federally regulated sports event contracts violate Iowa law. Kalshi says it sought written assurances against enforcement but the office refused, quoting Bird as saying she had been “looking at” Kalshi. The company, a designated contract market arguing CFTC exclusivity, asks the court for a declaration of federal preemption and an injunction; the filing includes no public response from state officials.