Utah Cracks Down on Prediction Markets, Companies Halt Operations

Utah filed 14 criminal charges against prediction market operator Kalshi and its co-founders on October 28, prompting DraftKings, FanDuel, and Fanatics to cease specific prediction market operations in the state. The move aligns with Utah’s stance against all forms of gambling, according to Attorney General Derek Brown.

What Happened

The state of Utah filed 14 criminal charges against prediction market operator Kalshi and its co-founders, Tarek Mansour and Luana Lopes Lara, on October 28, 2026. This action led to several prediction market companies restricting or ceasing their operations within the state shortly thereafter, according to The Salt Lake Tribune (Salt Lake Tribune).

Following the charges against Kalshi, DraftKings sent an email to consumers on October 28, announcing a halt to certain prediction market operations in Utah. FanDuel Predicts subsequently ceased operations in the state on October 30. Fanatics also stopped all trading on its Fanatics Markets platform in Utah on Wednesday, according to the Tribune report (Salt Lake Tribune).

Utah Attorney General Derek Brown stated, “Utah law is clear: gambling is illegal in our state.” He added, “Some of the largest online gambling apps are now pulling out of Utah. I appreciate these companies being responsive to our efforts,” (Salt Lake Tribune).

Key Details

• Utah filed 14 criminal charges against Kalshi and its co-founders on October 28, 2026, alleging its prediction market is gambling, according to the Utah Attorney General’s office (Utah Attorney General).
• DraftKings ceased operations for sports, novelty, political, and certain other event contracts in Utah, effective October 28, while allowing financial event contracts to continue (Salt Lake Tribune).
• FanDuel Predicts halted sports, political, and novelty event contracts for Utah customers on October 30, but maintained services for economic benchmarks and key financial indicators (Salt Lake Tribune).
• Fanatics stopped all trading on its Fanatics Markets platform in Utah on Wednesday, November 2, 2026 (Salt Lake Tribune).

Why It Matters

This crackdown by the Utah Attorney General’s office underscores the state’s strict prohibition of all forms of gambling, as articulated by Attorney General Derek Brown (Salt Lake Tribune). The swift response from major prediction market operators like DraftKings, FanDuel, and Fanatics to restrict or cease specific services in Utah indicates the significant impact of regulatory enforcement on their operations. The state’s action against Kalshi and its co-founders, along with the subsequent withdrawals, highlights the legal challenges and varying regulatory interpretations that prediction markets face across different jurisdictions, particularly in states with explicit gambling bans.